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Empirical Study on Regional Gap of Insurance in China Based on Insurance Density Perspective

WU Xiang-you (Economics School, Xiamen University, Xiamen 361005, China)  
This paper sets up a multivariate model to identify the determinants of provincial insurance development, and a multi-deviation model to testify the causes of insurance development difference among provinces. By Granger test and stepwise regression, we select the fittest regressors for both models to ensure causality between regressors and estimators and decrease multicollinearity among regressors. It concludes that the economic development is the fundamental determinant of provincial insurance, and that the difference of insurance development among provinces originates from economic development difference.
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