The Synergistic Effects Between Insurance and Credit Markets on Economic Growth: Evidence from China |
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| Authors: | Guan-Chun Liu Lei He |
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| Institution: | 1. School of Economics &2. China Center for Economic Studies, Fudan University, Shanghai, People's Republic of China;3. School of Business, Hunan Normal University, Hunan, People's Republic of China |
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| Abstract: | Insurance and credit markets share some common roles in stimulating economic growth, whether they are complementary or not is worth researching further. Based on the generalized method of moments, this paper investigates the synergistic effects between insurance and credit markets on economic growth in Chinese different regions using an interaction term in the regression model. Moreover, to understand the different economic roles of life and nonlife insurance sectors, we include them into estimation model as well. The results indicate that total insurance and credit markets are substituted, life insurance and credit markets are substituted, and nonlife insurance and credit markets are complementary in the whole region. Specifically, the synergistic effects between insurance and credit markets on economic growth vary considerably across different regions. These findings offer several useful insights for policy-makers. |
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| Keywords: | Synergistic effect insurance market credit market economic growth China |
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