Research On The Cooperative Development Of Agricultural Insurance And Agricultural Credit In Xinjiang

Agricultural insurance and agricultural credit are the most important part of rural financial system. Effective cooperation between the two has an irreplaceable role in promoting the development of agricultural economy. Its effectiveness is mainly reflected in that through the agricultural insurance can transfer the agricultural production risk, and make farmers' credit level has been greatly improved, So it can alleviate the problem of "difficult loans" in some extent. It's helpful to solving the problem of shortage of funds for agricultural development in our country. Xinjiang is a major agricultural province in China. The level of agricultural development affects the whole national economic development of Xinjiang. Therefore, the study of Xinjiang agricultural insurance and agricultural credit cooperative development has positive significance.The paper begins with analysis of the concept of agricultural insurance and agricultural credit and related theory of economics, Analyzed the mechanism of the coordinated development of the two, the conclusion is drawn that effective cooperation between the two can increase the expected return of credit institutions; to relieve farmers "loans difficult" issue; reduce the loan interest rate of rural credit institutions to promote the expansion of the scale of credit and is conducive to the rapid development of the insurance company in rural markets. On this basis, paper carried on the empirical analysis cooperative development effect relations of Xinjiang agricultural insurance and agricultural credit, through collecting the relevant statistical data of Xinjiang agricultural insurance and agricultural credit, using cointegration test and VAR model and impulse response function and differential decomposition approach to detect the relationship between the two. It is concluded that there is no long-term stable equilibrium relationship between the two, and the level of cooperation between the two is low, but the cooperation between the two has been continuously strengthened. Then, analysis of the reasons for the empirical conclusions to draw the reasons for hindering cooperation between the two sides: Xinjiang agricultural insurance system is not sound, the lower level of agricultural credit and agricultural insurance products; Xinjiang rural credit institutions and agricultural insurance company cooperation superficial; The insufficient effective supply and demand of agricultural insurance in Xinjiang; Lack of perfect laws and regulations system. Finally, the paper draw lessons from the domestic and foreign mainly agricultural insurance and agricultural credit cooperative development model to put forward the countermeasures and suggestions for the long-term development of Xinjiang model: Improve the agricultural insurance system; Deepening the mechanism of coordinated development; Increase the effective demand of agricultural insurance; Improve the system of laws and regulations; Strengthening the construction of rural credit system.