Research On The Influence Of Agricultural Insurance On The Agricultural Total Factor Productivity

In China’s fifteen plan,the rural revitalization strategy is the focus of the government’s work,which means that agricultural and rural economic development is the focus of China’s attention.The key point to promote agricultural rural economy is to improve agricultural Total factor productivity(agricultural TFP).This paper mainly discusses the mechanism of Agricultural Insurance’s influence on agricultural Total factor productivity from the angle of agricultural insurance.First of all,this paper introduces the concept of Agricultural Insurance,agricultural Total factor productivity and the development of agricultural insurance in China.Based on the theory of rural finance,this paper analyzes the mechanism relationship between Agricultural Insurance and agricultural Total factor productivity,and points out that agricultural insurance has direct influence on agriculture TFP,and also has indirect influence through promoting credit.Based on this relationship,this paper empirically analyzes the direct and indirect effects of Agricultural Insurance on agricultural Total factor productivity.The input-output index system is constructed based on the provincial panel data of 31 provinces(autonomous regions and municipalities)in mainland China from 2011 to 2019,and the DEA-Malmquist index method is used to measure the agricultural Total factor productivity and its components in each region of China,then we use the fixed effect model to analyze the direct impact of agricultural insurance on agricultural TFP,and further use the intermediary effect model to explore the indirect impact of agricultural insurance on agricultural TFP through agricultural credit.The results of the empirical analysis show that:On the one hand,agricultural insurance can directly promote the growth of agriculture through its ability to adjust the resource allocation and factor input in the process of agricultural production and the incentive mechanism of agricultural insurance itself.On the other hand,agricultural insurance has an indirect way to promote the growth of agricultural Total factor productivity by increasing the total amount of agricultural loans,and about 20%of the impact path of agricultural insurance on agricultural Total factor productivity is through the intermediary effect of agricultural loans.Finally,according to the results of the demonstration,the corresponding policy recommendations are put forward for the agricultural insurance,agricultural industry and rural revitalization in China.