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The Research On The Agricultural Insurance And Rural Credit Cooperative Development

Posted on:2015-11-10Degree:MasterType:Thesis
Country:ChinaCandidate:W J FanFull Text:PDF
GTID:2309330434952469Subject:Insurance
Abstract/Summary:PDF Full Text Request
Agriculture holds the fundamental position in national economy and supports the healthy and stable development of national economy, although the proportion of gross agricultural product in gross domestic product is not so big, even may has a drop tendency. At the same time, China is a country with high-risk natural disaster. Every year different kinds of natural disaster cause serious losses to agriculture product and make a negative impact on the healthy development of the rural economy. Agriculture is a natural weak industry, which needs the support of government and the protection of the rural financial institutions to make itself develop well and rapidly. In spite of the achievements we have made in rural financial market, we are still unable to satisfy the need of agricultural production. Several factors have hindered the development of rural financial market, for instance the weakness in the basis of agricultural development, high risk in both nature and market, severe problem of information asymmetry.The characteristics of the agricultural industry such as high input, high risk and low profits, result that the financial institutions are reluctant to conduct business in rural market. Agricultural insurance, as a way to mitigate risks, can efficiently disperse the agricultural risk and make up for a loss caused by the natural disasters, and also help the affected farmers resume production and guarantee their life. Agricultural insurance plays an important role in solving the tri-agricultural problem by means of reducing natural and market risks as well as risks of credit agency when they are running rural credit and solving the farmers’ concerns, also effectively broadening the financing way for the farmers.The paper is based on the basis theory of insurance and finance and select agricultural insurance as an entry point. Agricultural insurance is a quasi-public goods and has positive externality, what is more, it function well in dispersing the agricultural risk, making up for a loss and improving credit for the farmers, and circulating funds in rural. Therefore, the paper puts forward the policy-type agricultural insurance and countryside credit coordination development pattern to achieve the goal of developing rural financial market.Chapter one is introductory theory, which states the research background and significance of this paper, review of related researches both domestic and overseas, research methods and innovation, and the structure of the paper.Chapter two focus on the dilemmas and restraining factors in the development of rural finance. The main dilemmas include that the rural fund outflows is rather serious, the financial suppression phenomenon still exists, and the rural financial innovation is not enough. The weakness in the basis of agricultural production, high risk in both nature and market, severe problem of information asymmetry and the function orientation of rural financial institution is not accurate have restricted the development of the rural financial market heavily. Seeking joint development with the rural insurance could solve these problems partly.Chapter three carries out basis theories and functions of developing rural insurance, and how the rural insurance works in the rural insurance. For now, the existing rural insurance cannot promote the development of the rural finance. The main theories cover the agricultural protection theories and the attribute of quasi-public good about rural insurance. The functions contain dispersing and removing the agricultural risk, making up for a loss for the farmers, circulating funds in rural, acting as a means to support agriculture and benefit farmers, and participating in rural social management. Rural insurance can accelerate the development of rural finance though by stabilizing agricultural production, decreasing information asymmetry, dispersing risks of rural financial institution and promoting agricultural modernization. Nowadays, the existing rural insurance cannot propel the development of the rural finance.Chapter four sets forth the basis theories, interactive mechanisms, and pattern of policy-type agricultural insurance and countryside credit coordination development. To begin with, to develop the rural credit needs the support from rural insurance. And then the rural credit institution will help rural insurance expand the market. They work together to activate the rural financial market. At the end of Chapter four shows discusses four development modes in some typical district (the Guangdong model, The Sinkiang model, the Shandong model, the Jiangsu model). Chapter five studies the problems consisted in the policy-type agricultural insurance and countryside credit coordination development and how to develop. This chapter also raises the feasible model. The main problems incorporate that the rural insurance development lags limit the rural credit, collaborative products are insufficient, resources share mechanism has not been established, and the relevant laws and regulations system is not perfect. To make the policy-type agricultural insurance and countryside credit coordination develop smoothly, we must improve agricultural insurance system, set up policy-type agricultural insurance and countryside credit coordination development interactive mechanisms, intensify policy support, perfect the relevant laws and regulations, and enhance supervision for the rural financial insurance. his paper may supply the choice the collaborative development model include "rural credit and agricultural insurance and reinsurance" mode,"comprehensive insurance and mortgage loan" mode,"agricultural credit and loan guarantee insurance and reinsurance" mode.The paper points out several innovations and features. Firstly, study the rural finance from the policy-type agricultural insurance and countryside credit coordination development point. And then, put forward the innovation model of policy-type agricultural insurance and countryside credit coordination development and some corresponding policy suggestions integrated with the actual conditions of rural development and rural financial market.
Keywords/Search Tags:The rural financial market, Rural credit, Agricultural insurance, Asymmetric information, Coordinated development
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