Analysis Of The Routes Of The Development Of Insurance Affects Economic Growth In Jiangsu Province

Finance is an important driving force for economic development, and it is the heart of the modern economy. In recent years, the level of financial development of China is rising and the role of finance in promoting economic growth is increasingly apparent. Insurance is an important part of the financial system, so it has the characteristics of finance, but also has its own unique role. Since its recovery in1980, China’s the insurance industry is playing an increasingly important role in the national economy. Jiangsu’s economic development is at the forefront of China’s economic and it develops rapidly in rapid economic development in the province in recent years, leading the national level. In recent years, with the continuous development of insurance in Jiangsu province, the proportion of Insurance assets in the financial sector assets keeps rising and the role of insurance in promoting economic growth becomes more and more obvious.On the basis of summarizing the financial development and economic growth heories, it analyzes the correlation of the development of insurance and economic growth in Jiangsu Province and then it analyzes the routes in which the insurance development effects the economic growth in Jiangsu Province according to the actual development of the insurance and economic Jiangsu Province. It thinks the development of the insurance may affects economic growth through risk transferring and compensation, investment, technological progress, economic growth, consumption and export in Jiangsu Province. Based on this, it does an empirical analysis of the routes in which the insurance development promotes economic growth in Jiangsu Province. According to the empirical results and combining the current insurance development and economic growth in Jiangsu province, it proposes some targetable policy recommendations.In the empirical part, firstly it analyzes the impacts of insurance on investment, technological progress, economic growth, consumption and export in Jiangsu Province with the panel data model. The empirical results show the development of insurance is the Granger cause of investment, consumption and exports, but not the Granger cause technological progress; the development of insurance promotes the investment, consumption and exports and insurance’s promoting effect on consumption is the strongest; the promotion of insurance on technological progress is not significant. Then, it analyzes the impacts of investment, technological progress, consumption and export on economic growth with the VAR model. The empirical results show:the investment, technological progress consumption and exports are the Granger causes of economic growth in Jiangsu province and the investment, technological progress and consumption promotes economic growth significantly, and the contribution of consumption on economic growth is the strongest. Through empirical analysis,we find the insurance development promotes economic growth through Increasing the volume of investment, promoting consumption and exports insurance promotes economic growth strongly through increasing consumption. But insurance promotes economic growth a little through promoting technological progress.According to the empirical results and combining the current insurance development and economic growth in Jiangsu province, the main Suggestions are as follows. Increasing the scale and efficiency of the conversion of savings into investment and give full play to the role of investment development path of insurance on economic growth; Promoting the development of science and technology insurance, increasing the support of insurance on technological progress and taping the potential of technological progress routes on economic growth path; giving full play to promote the role of insurance on consumption through conducting campaigns of Insurance knowledge and raising the level of service the insurance industry; developing the export credit insurance and improving the coverage of export credit insurance to provide support to foreign trade in Jiangsu Province.