Study On The Mechanism And Effectiveness Of The Cooperation Between Rural Credit And Agricultural Insurance

The development of agriculture plays an important role in promoting the healthy operation of the national economy.Agricultural modernization is the time requirement of agricultural development.As agricultural production is greatly influenced by natural disasters and market fluctuations,the development of agricultural modernization needs the protection of agricultural insurance.Because that agricultural producers are general short of funds and lack of financing channels,financial support for agriculture is relatively insufficient,rural credit is the prima external financial support for agricultural modernization.As agricultural production is characterized by decentralization,small scale and high risk,insurance companies have a relatively high cost in the operation of agricultural insurance for which agricultural insurance develops slowly.Similarly,faced with higher operational risk in rural credit operation,banks are reluctant to provide adequate agricultural loans.Due to the synergy effect,the scale economy effect and the scope economic effect,the cooperation between rural credit and agricultural insurance can enable banks and insurance companies to form complementary businesses,integrate their advantageous resources,and reduce operating costs.Under the perspective of cooperative game,the cooperation between rural credit and agricultural insurance can not only improve overall income,the respective revenues of banks,insurance companies and farmers can be improved.The lead and support of the government and the signing of the covenant is the guarantee of the realization and rational distribution of cooperative income.A non-observed effect regression analysis with the panel data of 28 provinces in China from 2004 to 2015 indicate that rural credit and agricultural insurance have obvious interaction effects on the increase of agricultural output and farmers' income,the cooperation between rural credit and agricultural insurance is conducive to the growth of agricultural output and farmers' income.With the panel data of 28 provinces in China from 2004 to 2015,an input-output efficiency analysis by DEA indicates that the pure technical efficiency of input-output efficiency is significantly different in eastern,western and central regions,the highest is in the east,the second is in the center,and the lowest is in the west;as for the scale efficiency,the highest is in the middle,the second is in the west,and the lowest is in the east.To promote the cooperation between rural credit and agricultural insurance,it is necessary to ensure the interests of the participating parties,develop appropriate promotion strategies and deepening cooperation areas.