Empirical Reserch Of Life Insurance Development And Economic Growth In Hunan Province Based On State Space Model

In recent years, the life insurance industry of our country has developed very rapidly, and the function of the life insurance industry has strengthened unceasingly, with the status promoted, the life insurance on the role of economic growth is gradually strengthening. In China, the economic situation of each province is different, the development of life insurance is different, and its effect on economic growth are different, but also because of economic changes, policy changes, external shocks and other factors impact on the economy, with a fixed parameter model to study the relationship between the life insurance development and economic growth, no such changes in the response. Therefore, this article attempts to make use of state space model to make empirical research on the life insurance industry in Hunan development and economic growth. Firstly, the development of life insurance and economic growth in Hunan Province are described in detail, then A brief analysis of the relationship between them. This paper selects Hunan life insurance premiums and GDP as two indicators, after Co-integration and Granger causality test, establish a varying parameter state space model, empirical analysis the dynamic relationship between the life insurance development and economic growth in Hunan Province by the state space model, The empirical results show that the life insurance development of Hunan Province to promote economic growth have a negative effect from1995-1997, economic growth promoting the development of the life insurance; The life insurance development of Hunan Province promoted economic growth from1998-2010, with the life insurance industry continues to mature, its role in promoting economic growth is getting stronger, But, compared to the life insurance industry of our country in promoting economic growth, the life insurance industry of Hunan in promoting economic growth is relatively weak, not enough efforts to promote. Finally, put forward three proposals such as expand the coverage of the life insurance industry in the rural and backward areas of Hunan Province; Give full play the potential demand for life insurance industry in Hunan to promote economic growth; Life insurance companies to develop new suitable life insurance products, while reducing the price.So as to better development of the life insurance industry in Hunan and achieve rapid economic development in Hunan.