Agricultural Insurance,agricultural Loan And Per Capita Net Income Of Rural Households

Finance played a principal role in promoting the development of national economy. With the transformation of modern agricultural development mode, the position of rural finance in the agricultural economy is becoming more and more important. The development of rural economy, the increase of farmers' income and the improvement of living standard are inseparable from the support of rural finance. Agricultural Insurance and Agricultural Loan have a particularly prominent impact on the income of farmers.With comprehensive consideration of the relationship among Agricultural Insurance, Agricultural Loan, and the per capita net income of farmers, the paper comparatively analyzed the research objects which are the national area, eastern, central and western regions, and comprehend the inner link and the mechanism of action of the Agricultural Insurance, Agricultural Loan and the per capita net income of farmers to help the relevant subject of decision-making understand the developing status and trend of Agricultural Insurance, Agricultural Loan, and per capita net income of farmers, and to help the government to formulate and publish relevant policy to promote the healthy and orderly development of the rural financial market, so as to increase farmers' income and improve the living standards.In order to better explore the relationship among Agricultural Insurance, Agricultural Loan and per capita net income of farmers, based on the panel data of 31 provinces from 2001 to 2013,this paper established the PVAR model to empirically and sub-regionally research the relationship between Agricultural Insurance,Agricultural Loan and per capita net income of rural households using GMM parameters to estimate the impulse response function and variance decomposition analysis. The results showed that in the national area, eastern, central and western regions, Agricultural Insurance has a negative role in promoting per capita net income of farmers, but in the long run, only in the western region, Agricultural Insurance failed to show the positive role of promoting per capita net income of farmers; Agricultural Loan in each region showed positive promotion effect on per capita net income of rural households, but there is a lag period of 1-2 years; the effect of Agricultural Loan on per capita net income of rural households is greater than that of Agricultural Insurance; the change of per capita net income of has some influence on the demand of Agricultural Insurance and Agricultural Loan, besides, there are regional differences in the interaction between Agricultural Insurance and Agricultural Loan.