Research On The Interaction Mechanism Of The Agricultural Insurance And Farmers’ Income

Rural development,agricultural efficiency and farmers’ income,this there problem was in an important strategic position in China’s economic development,as well as an important foundation of the development of China.However,the inferiority of agriculture,the risk of agricultural production and the uncertainty of farmers income,which restricts economic development speed and efficiency of the "three rural" market competition.Agricultural insurance,as an important system arrangement of transfer and decentralized agricultural risk,plays an important role to solve the "three rural" issue.At present,China is the second largest agricultural insurance market after the United States.Agricultural insurance has covered more than 90 crops varieties at all the provinces in the China,and insured more than 200 million farmers.Farmers insured enthusiasm is not high enough,even though they have strong demand for risk protection.moreover;government make efforts to support agricultural insurance development,but there was still insufficient supply of agricultural insurance.These two problems pose a serious challenge to the sustained and healthy development of agriculture insurance and farmers’ income.Under the background of dual problems,agricultural insurance was able to promote the income of farmers? What impact does the farmers’ income have on the effective demand of agricultural insurance?At present,interaction mechanism between agricultural insurance and farmers’ income has become an important issue of their sustained and healthy development.This paper base on the knowledge of agricultural insurance welfare effect theory and demand theory,study the interactive mechanism between agricultural insurance and farmers’ income,then empirical study effects between agricultural insurance and farmers’ income.Finally,base on the conclusions,related policy are recommended in the paper.Paper is divided into five parts: The first chapter describe the background and significance of this research,and give literature reviewed about the related field of domestic and foreign research,as well as list main research contents,methods and technology road map;The second part discusses the basic features and theoretical basis of agricultural insurance,including knowledge of the theory of agricultural insurance welfare economics and demand theory;The third part base on the related theory of agricultural insurance,study the mechanism from interactive aspect between agricultural insurance and farmers’ income;The fourth part empirical study on agricultural insurance and rural incomes interaction,on the one hand,using the method of cointegration analysis empirical study the effect of agricultural insurance on farmers’ income;on the other hand,empirical research the effect of farmers’ income on agricultural insurance based on the dynamic panel data;The fifth part is about the main research conclusions and policy recommendations,summing up the relevant conclusions,based on the overall,long-term and operation rules,this paper put forward relevant policy suggestions which promote agricultural insurance development and increasing the income of farmers.Base on the existing academic research,this paper makes two possible improvements:Firstly,expanded the perspective from one-way to the interactive between agricultural insurance and farmers’ income.It is worth noting that the agricultural insurance premium subsidies which was launched at the year of 2007 are included in the research category;Secondly,in research methods,this paper uses time series method including the cointegration test,Granger causality test,and generalized impulse response to empirical study the relationship between the agricultural insurance and farmers’ income.Besides,Considering the cycle of agricultural production and lag insurance compensation,with reference to the household production theory,this paper establish a effective demand model for agricultural insurance,then investigates the determinants of the effective demand for agricultural insurance using panel system GMM models on a panel data.