Analysis On The Effect And Heterogeneity Of Chinese Agricultural Insurance On Agricultural Production

In recent years,China’s agricultural production has made full progress and development,but due to the weak nature of agriculture itself,it needs to face various risks such as nature and market at the same time,especially in some remote areas,agricultural production facilities and equipment are relatively backward,and still can not get rid of the situation of "living off the sky".According to statistics,the average annual economic loss caused by meteorological disasters is around RMB 200 billion,accounting for 1%-3%of GDP.As an effective risk protection mechanism,agricultural insurance can effectively disperse and transfer risks,therefore,the impact of agricultural insurance on agricultural production has become an important area of academic investigation.However,due to the vast size of China,the level of economic development and the degree of development of agricultural insurance vary greatly from province to province and city to city,and the natural environment,production technology level and geographical location of agricultural production are all different.In order to truly understand whether agricultural insurance has an impact on agricultural production and whether the impact of agricultural insurance on agricultural production differs in different regions.Based on previous research,this thesis explores the actual impact of agricultural insurance on agricultural production by building a panel data model of 273 cities across China from 2010 to 2019,and analyses the heterogeneity of the impact effect of agricultural insurance on agricultural production according to geographical distribution as well as the level of economic development.Specifically,the main research elements of this thesis are as follows:The thesis is divided into four main chapters.The first chapter introduces the research background,significance,research content,research methodology,innovation points and shortcomings of this thesis,and explains the development history,current situation and problems of two important factors of agricultural insurance and agricultural production.Chapter 2 sorts out and summarises the literature on the relationship between agricultural insurance and agricultural production at home and abroad.Chapter 3 outlines the specific concepts and characteristics of agricultural insurance and agricultural production,and also describes the theories of welfare economics,regional disequilibrium development and agricultural reproduction,and puts forward the hypotheses to be tested.Chapter 4 presents an empirical analysis of the effects of agricultural insurance on agricultural production.Chapter 5 presents a summary of all the studies.Policy recommendations are also made based on the results obtained.The study shows that,overal agricultural insurance has a significant contribution to agricultural production.By region,there are significant differences between the East,Central and West,with the extent of impact being most significant mainly in the Central region,and insignificant in the East and West.This is due to the fact that agricultural insurance does have a positive impact on agricultural production,but as the investment in agricultural insurance continues to increase,its contribution to agricultural production first goes from nothing to something,and then gradually declines until there is no significant effect,By level of economic development,the impact effect is most pronounced in areas with intermediate economic development,and insignificant in areas with both high and low economic development.This is considered to be due to the fact that the marginal utility of agricultural insurance to agricultural production increases and then decreases.In regions with low GDP,the slow economic development and slow development of agricultural insurance has led to a failure to significantly boost agricultural production.In areas with high GDP,the impact on agricultural production is no longer significant as the economy is more developed and agricultural insurance develops faster and reaches saturation.Therefore,this thesis suggests that the relevant authorities further optimise agricultural insurance subsidy policies and the structure of agricultural insurance,and continuously improve the popularity of agricultural insurance publicity and agricultural insurance payout rates.