Empirical Analysis Of The Effect Of China’s Insurance On Economic Growth Based On Spatial Econometric Model Of Panel Data

China’s insurance industry has an important effect on economicgrowth which can not be ignored. In the relationship between theinsurance industry development and economic growth, there are a lot ofresearch, but the prevalence of great importance to the total results andthe time series of changes, ignore spatial factors, the lack of research onthe insurance industry in the spatial distribution and the regulation. Basedon this, the paper inputs spatial factors, the insurance industry as an inputto the product, taking into account the labor and capital inputs, establish aspatial econometric model with30provincial panel data from2000to2009. Starting from the three main functions of the insurance, which isrisk management, financing and social management, first from thequalitative view, analyses the role of China’s insurance to economicgrowth; and then conduct an empirical analysis from a quantitative pointof view, estimates the impact of China’s insurance to economic growth,found that the insurance industry to the economic growth has a spatialdependence and spatial autocorrelation; By comparing the spatial lagmodel and the spatial error model, the spatial lag model is the optimalmodel of the analysis of the insurance industry to economic growth,which found that the development of China’s insurance on the economicgrowth with a role of positive promotion; To compare different spatialright weight matrix, found that in geography the right weight matrix and the economic right weight matrix, the estimation results of spatialeconometric model is slightly different, spatial lag model with economicright weight matrix is superior to the one with geography right weightmatrix.