WTO and the Chinese Insurance Industry

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.

Publication Information
Article Title: WTO and the Chinese Insurance Industry
Journal: The Geneva Papers on Risk and Insurance - Issues and Practice (Jul, 2009)
Author(s): Leverty, Tyler J.;  Lin, Yijia;  Zhou, Hao
Researcher Information
Lin, Yijia
Lin, Yijia
N. Z. Snell Life Insurance Professor
HLH 425 V
P.O. Box 880490
University of Nebraska-Lincoln
Lincoln, NE 68588-0490, USA
Phone: (402) 472-0093
Fax: (402) 472-5140