An Empirical Study On The Impact Of Agricultural Insurance In Anhui Province On The Development Of Agricultural Credit

"Three rural" issue has always been a top priority for all aspects of China's work.It concerns the overall health of the national economy development and social stability.Establishing and perfecting the rural financial system is the important content to solve the problem of "agriculture,rural areas and farmers".In the rural financial system,agricultural credit can provide farmers with the necessary financial support for production.However,the provision of credit services for agricultural production often has the characteristics of low returns and high risks.And rural credit institutions as enterprises,profitability and security are the main goals of the pursuit.So it is difficult for farmers to obtain loans from rural financial institutions.In order to improve farmers' credit rating and the ability to resist risks,reduce the risk of agricultural credit business in financial institutions,and alleviate the problem of "loan difficulty" of many farmers.The government encourages the introduction of agricultural insurance in the agricultural credit market,which can not only increase the farmers' ability to resist risks,also can be used as agricultural credit collateral,reduce the risk of credit funds cannot be recycled.The development of agricultural insurance will improve the business environment of agricultural credit market and promote the increase of agricultural credit demand and supply.In recent years,the government has introduced many policies in order to encourage the cooperation between the bank and the insurance industry.It has also explored and implemented the “insurance + credit”model in various places,and vigorously explored the role of agricultural insurance in reducing agricultural credit risk and acting as collateral for loans.In this context,this article combines domestic and international research status and related basic theories to explore the impact of agricultural insurance in Anhui Province on the development of agricultural credit.This article firstly introduced the background of the development of China's agricultural insurance and agricultural credit cooperation,and elaborated on the interaction mechanism of the two in the theoretical part,and the typical model of“insurance + credit” in various regions.Practice has proved that agricultural insurance can improve the farmers' ability to resist risks and has the role of mortgage guarantees,which can promote the increase of agricultural credit.Then it analyzes the development status and existing problems of agricultural insurance and agricultural credit in Anhui Province,and introduces the “insurance + credit” business carried outin Anhui Province in recent years.Then,based on the panel data of 16 cities in Anhui Province,this paper selects indicators that can represent the development level of agricultural insurance and agricultural credit,and at the same time in order to prevent the occurrence of endogenous problems leading to inferred information that leads to false causation.This article also introduced other control variables affecting the level of agricultural credit development.In the case of empirical analysis,this paper firstly conducted panel unit root test and cointegration test for each panel data,and the results showed that all models had cointegration relationship at the 1% level of significance.In the test of model setting,through the F test and Hausman test,it was determined that a fixed effect model should be established.The model results show that Anhui agricultural insurance has a weak influence on the development of agricultural credit,and there is a certain negative correlation.In view of this result,this paper analyzes the reasons that hinder the development of the cooperation.Finally,for the reasons that impede the development of agricultural insurance to support the development of agricultural credit,this paper puts forward some countermeasures and suggestions to promote better cooperative development of agricultural insurance and agricultural credit in Anhui Province.