WTO and the Chinese Insurance Industry

Geneva Papers on Risk and Insurance - Issues and Practice, Vol. 34, No. 3, pp. 440-465, 2009

30 Pages Posted: 29 Sep 2007 Last revised: 2 Oct 2013

See all articles by J. Tyler Leverty

J. Tyler Leverty

University of Wisconsin - Madison

Yijia Lin

University of Nebraska at Lincoln - Department of Finance

Hao Zhou

Allianz General Representative Office China

Date Written: April 7, 2008

Abstract

This paper provides new information on the impact of the entry of foreign firms on a financial services industry by examining the Chinese insurance industry surrounding China's accession to the World Trade Organization (WTO). Our analysis reveals that insurers experienced significant growth in total factor productivity over the sample period. We also observe a structural improvement in efficiency after WTO accession, but geographic and product market restrictions placed on foreign firms reduce these positive effects. Overall, the results are consistent with there being a significant increase in social welfare during our sample period, but they also lend support for further deregulation.

Keywords: Insurance, Efficiency, Productivity, WTO

JEL Classification: G22, G18, D24, L10

Suggested Citation

Leverty, J. Tyler and Lin, Yijia and Zhou, Hao, WTO and the Chinese Insurance Industry (April 7, 2008). Geneva Papers on Risk and Insurance - Issues and Practice, Vol. 34, No. 3, pp. 440-465, 2009. Available at SSRN: https://ssrn.com/abstract=1016867 or http://dx.doi.org/10.2139/ssrn.1016867

J. Tyler Leverty (Contact Author)

University of Wisconsin - Madison ( email )

716 Langdon Street
Madison, WI 53706-1481
United States

Yijia Lin

University of Nebraska at Lincoln - Department of Finance ( email )

Lincoln, NE 68588-0490
United States

Hao Zhou

Allianz General Representative Office China ( email )

C211 Beijing Lufthansa Center
50 Liangmaqiao Road
Beijing, 100016
China

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