The Empirical Study On The Impact Of Agricultural Insurance On Urban-Rural Income Gap

Since China’s economy and society got into a stage of high-speed development,the income level and quality of life of farmers have been continuously improved.With the efforts of all parties,China completed the historic breakthrough in the poverty alleviation campaign in 2021.This staged victory does not mean the end of China’s poverty alleviation work.On the contrary,it marks the new beginning.After painstaking efforts,most farmers have been lifted out of poverty,but how to curb the return to poverty,make a smooth transition,reduce the potential gap and do a good job of consolidating the results while smoothly connecting to the rural revitalization strategy is still the key points of current work deployment.The 20 th National Congress of the CPC clearly pointed out that the income gap between areas of city and countryside is the hinge for rural farmers to become rich and it is also the main weakness of the construction of a Chinese path to modernization.On the basis of the early cause of poverty alleviation,the next step is to move towards a new strategic height and incorporate rural revitalization into the new journey of building a modern power.Focusing on the relationship between urban and rural areas in recent years,although the income gap between urban and rural areas has shown a positive trend of gradually narrowing,there are still significant deficiencies compared with developed countries.Therefore,from poverty alleviation to rural revitalization,alleviating the urban-rural income gap is the core challenge and key move to promote common prosperity.In order to steadily improve the income level of farmers,China has introduced a series of policy measures around inclusive finance to comprehensively accelerate the promotion of rural development.From the perspective of the overall process and practical experience,the effectiveness of agricultural insurance and other financial instruments with rural residents as the audience group in poverty alleviation continues to highlight,which not only fully reflects the role of economic compensation,but also effectively improves the balanced coverage of financial resources in rural areas.At the same time,agricultural insurance has also been put forward several times in the reports and national documents of the Chinese government this year.So it is not difficult to find that agricultural insurance is highly expected in the process of building a powerful country.As an indispensable part of the rural inclusive financial system,under the background of the post-poverty relief era,can agricultural insurance exert its protective function of strengthening agriculture and benefiting farmers? Can agricultural insurance narrow the income gap between urban and rural areas under the joint effect of pre-disaster and post-disaster? If it does help alleviate the income gap between these two areas,how should we develop agricultural insurance in the future to support rural revitalization under the new situation? The above questions are worthy of in-depth study.In terms of both theoretical and practical significance,the answers to these questions are particularly critical to achieving common prosperity and the second centenary goal.Through sorting out the data of domestic and foreign scholars on agricultural insurance and urban-rural income gap,this paper has carried out a comprehensive review of previous literature.Foremost,at the theoretical research level,this paper starts with the Kuznets’ inverted U-shaped theory,the dual economic structure theory,the insurance demand theory,the financial exclusion theory,the risk management theory and the Marx’s anti-poverty theory to explore the impact of the development of agricultural insurance on the urban-rural income gap and unpacks the meaning of agricultural insurance of its development and its mechanism of action on the urban-rural income gap.The advantages,challenges and future prospects of agricultural insurance is described in detail.Secondly,at the level of empirical research,this paper conducts data search based on China’s annual insurance yearbook,China’s urban yearbook,population and employment statistics yearbook,Breck agricultural database,WIND financial terminal and other platforms.On the basis of previous studies and in combination with the dualistic structural characteristics of China’s current regional economic development,the Taier index is used as the main explanatory variable to measure the absolute income and population structure changes of urban and rural residents from a better perspective.After the correlation analysis of each explanatory variable,a systematic GMM model is established through the sequence correlation and Hansen test.The panel data of 31 provinces in China from2011 to 2020 are used to conduct positive analysis on the impact of the development of agricultural insurance on the urban-rural income gap,further making a profound study of the influential mechanism and degree of effect,drawing the main conclusion that the development of agricultural insurance can significantly reduce the urban-rural income gap under the combined action of the pre-disaster and post-disaster.Finally,on the basis of the current development of urban and rural areas in China,combining the qualitative and quantitative research results,from the three levels of the government,insurance companies and agricultural operators,this paper puts forward detailed countermeasures and suggestions such as building a multi-dimensional agricultural insurance security system,increasing subsidies for agricultural insurance premiums,optimizing the whole process of insurance and claims service,promoting product development and innovation and forming a risk reduction awareness of pre-disaster prevention,which will help to increase the disposable pay cheque of farmers,cut the deficit between urban and rural areas,achieving all-round rural revitalization.