The Empirical Analysis of Productivity of Insurance Industry of China Based on Malmquist Index Approach

This study uses nonparametric Malmquist procedures to investigate productivity level and its dynamics change in Chinese insurance over the period 2000～2004.Malmquist Index can be decomposed into two components,which is technical progress and efficiency change.The results of this study indicate that the Malmquist productivity index is increasing annually.The growth of productivity mainly stems from the function of the technological progress,not from efficiency improving.The decomposition result also shows that there was the coexistence improvement in technical change and retardation in efficiency change.