The Development of Foreign Capital Insurance Market, FDI and Economic Growth in China

Abstract

This paper analyzes the relationship among foreign capital insurance market, FDI and economic growth in China. We use unit root test, least square regression and Granger causality test to examine the relationship with the data over the period 1984-2015. It is found that the development of China’s foreign capital insurance market has not promoted China’s economic growth, FDI has promoted China’s economic growth, and China’s economic growth has generally promoted the development of foreign capital insurance market. The channels of insurance market acting on economic growth are not smooth enough for foreign capital in China, and its action modes may be mainly applicable to China’s domestic insurance market.