Abstract
This paper examines the impact of the concentration of the property insurance industry on economic growth in China. We first compute the Herfindahl-Hirschman Index (HHI) for the Chinese property insurance industry and establish a two-step system of generalized methods of moments (Two-Step SYS-GMM) estimation to compute the economic effect using a unique data set from the years 1980 to 2014. The results show that while industry concentration appears to have decelerated in recent years, the property insurance market in China is still a comparatively oligopolistic market. Moreover, the HHI has a significantly negative impact on gross domestic product, and lowering the HHI could lead to higher eco- nomic growth.
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