Research On The Dynamic Impact Of Agricultural Insurance On Agricultural Total Factor Productivity

In China’s 14th Five-Year Plan,the rural revitalization strategy is a government priority,which means that rural economic development is a key task for China.Agricultural TFP is the source of economic growth of agriculture,and the key to improving the rural economy lies in increasing agricultural TFP,so the question of how to increase agricultural TFP quickly has become the key to China’s agricultural development.Only when we understand the patterns of agricultural insurance impact on agricultural TFP at different stages of insurance development,This paper aims to examine the extent to which agricultural insurance influences agricultural TFP at different stages of development and the ways in which it influences it from an agricultural insurance perspective.Firstly,the extent and ways of agricultural insurance impact on agricultural TFP are analysed on the basis of relevant theories and the research hypothesis of this paper is established.Next,a composite evaluation index system is constructed using panel data from 31 provinces and cities for the period 2009-2020,and the entropy value method is used to measure the agricultural insurance development composite index as a proxy variable for the level of agricultural insurance development,and also uses the DEAMalmquist index method to measure the agricultural TFP index and its decomposition index.The development of agricultural insurance and agricultural TFP was analysed at both national and regional levels.Based on the measured composite agricultural insurance and agricultural TFP development index and its decomposition index,a fixedeffects model is constructed and the impact of agricultural insurance on agricultural TFP at different stages of agricultural insurance development at both national and subregional levels is empirically tested and the impact paths are tested.Finally,based on the main conclusions from the previous analysis,several recommendations are made to promote quality agricultural insurance and agricultural TFP development in China.The main conclusions of this paper are that(1)agricultural insurance can promote agricultural TFP in two ways: technical progress in agriculture and technical efficiency of agriculture;(2)the impact of agricultural insurance on agricultural TFP shows pronounced regional heterogeneity;(3)the incentive effect of agricultural insurance on agricultural TFP increases as the level of agricultural insurance development increases;(4)the promotion of agricultural TFP by agricultural insurance pathways are significantly different at different stages.