Influence Of Livestock Insurance Participation On Herdsmen’s Consumption Behavior

As one of the “three drivers” of economic growth,consumption plays a fundamental role in China’s economic restructuring and the upgrading of economic growth quality.However,there are special differences between urban areas and rural areas in China.Compared with urban areas,the social environment in rural areas is more closed,and the residents ’livelihood is more fragile.The insufficient consumption demand of rural residents has become an important factor restricting the high-quality development of China’s economy.As an industry subordinate to agriculture,livestock is the pillar industry of pastoral economy in China,but its production has the characteristics of "high input,high risk and long cycle".The fluctuation of production income leads to the compression of consumption of herdsmen,which seriously restricts the level of individual welfare and the overall economy of pastoral areas.Therefore,it is very necessary to study the consumption demand of rural residents,especially the influencing factors of the consumption potential of herdsmen in pastoral areas.Livestock insurance is one of the important risk prevention mechanisms in the livestock industry,which can cover a large proportion of the input cost of production means,improve the reproduction capacity of herdsmen after disasters,and help them to form a stable and reasonable expectation of production income.Some studies have shown that the participation of livestock insurance has a great role in reducing risk perception,coping with negative shocks,and stabilizing the income generating ability of herdsmen.However,due to the immature business system of livestock insurance and the limited cultural cognition level of herdsmen,the promotion of livestock insurance is limited.It is difficult to stimulate the consumption potential of herdsmen in pastoral areas,so we must make full use of livestock insurance.Exploring the influence of livestock insurance participation on the consumption of herdsmen and its internal logic will provide a theoretical basis for the promotion of livestock insurance in pastoral areas,and then promote the high-quality development of China’s economy.On the basis of sorting out and summarizing relevant literature research,based on the theory of consumption behavior,282 herdsmen as samples,this paper analyzes herdsmen’s individual and family characteristics,income and consumption,livestock management and potential risks,livestock insurance subjects and present situation,livestock insurance claims and security effect and financial credit participation,to explore the effect of livestock insurance participation on the consumption of herdsmen and the internal logic.By introducing the indicators of livestock insurance participation,livestock production risk,livestock production scale and the consumption of herdsmen,using the interaction effect model and the intermediary effect model,the direct and indirect effects of livestock insurance participation on the consumption of herdsmen are empirically analyzed.The findings are:(1)Livestock insurance participation exerts a significant positive impact on household consumption,providing theoretical basis for the promotion of livestock insurance in pastoral areas.Besides,livestock production risk,difficulty of bank loan,family per capita income,livestock production scale,annual phone fee and proportion of migrant labor force are also important factors affecting household consumption.(2)Livestock insurance participation and livestock production risk not only affect household consumption alone,but also have an interaction effect.Specifically,livestock insurance uptake mitigates the negative effect of production risk on herders consumption,indicating that livestock insurance is an important means for herders to prevent and defuse production and operation risks.(3)The relationship between livestock insurance participation and herders consumption exerts a significant mediation effect with production scale as the mediation variable,implying the existence of an effect mechanism of "livestock insurance participation → breeding scale enlargement → consumption level rise" in the study area.(4)From the perspective of family income structure,the heterogeneity of the impact of livestock insurance participation on herders consumption is investigated.Compared with the households with less than a half of income from livestock production,the consumption amount of those with livestock production as their main income source is more sensitive to changes in livestock insurance participation and breeding scale.(5)The government should improve the financial subsidy system,market service and supervision system of livestock insurance to improve the participation rate;strengthen the production risk education for herdsmen,to enhance the risk awareness of herdsmen and make herdsmen to control risks actively;encourage the development of moderate scale breeding to improve the production capacity of herdsmen,and release their consumption potential.