Research On Interaction Between Agricultural Insurance And Farmers' Income Based On Panel Clustering

The development of agricultural economy is the basic problem in China 's economic transformation,the farmers' income is related to the sustainable development of modern agriculture,is also the core of "agriculture,rural areas and farmers" problem.On the one hand,the farmers' income problem related to the current domestic economic structure,while more closely related to the particularity of agricultural production and operation.Agricultural production of all kinds of risks is outstanding,combined with the farmers themselves weak ability to resist risk,led to increasing farmers' income is facing a severe test.Therefore,through the effective management of agricultural risk,to ensure the stability of agricultural production is particularly important,and agricultural insurance has become an important means to ensure the development of agricultural production and promote the sustainable growth of farmers' income.At the same time,the income level of farmers has an important impact on the effective demand of agricultural insurance.Thus it can be seen that there is not only one-way correlation between agricultural insurance and farmer's income,but there may be interaction.China is a vast country,geographical environment,economic development and the level of agricultural development is quite different among different regions,it is necessary to study on the regional differences between the agricultural insurance and farmers' income.Therefore,a comprehensive and systematic study of the interaction between agricultural insurance and farmers' income from the perspective of regional differences,it has an important strategic significance to improve the farmers' income,promote the development of agricultural insurance differentiation,accelerate regional agricultural modernization.At present,the study of the agricultural insurance and farmers' income mainly focused on unidirectional impact in the nationwide,some regional differences are also mainly divided into the eastern,central and western regions,therefore it cannot well reflect the actual differences of regional agriculture development.In this paper,the method of panel clustering is used to studythe interaction between agricultural insurance and farmers' income from the perspective of regional differences.On the basis of analyzing the theory of agricultural insurance and farmers' income,this paper explores the mechanism of interaction from the two dimensions of direct and indirect effects between agricultural insurance and farmers' income,cluster analysis was used to divide the 31 provinces into four regions,selects the provincial agricultural insurance premium income and net income of household operation as a sample data,quantitative analysis and verification of the interaction affects and regional differences between agricultural insurance and farmers' income used unit root test,cointegration test,panel VAR and variance decomposition methods,etc.The results showed that,There is a interaction effect between agricultural insurance and farmer's income,and there are obvious differences in the interaction effect of each region.Based on the conclusion of theoretical and empirical analysis,this paper puts forward reasonable and feasible policy suggestions from the aspects of promoting the benign interaction between agricultural insurance and farmer's income and realizing the regional development of agricultural insurance in China.