The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces

Baoling Zou, Zanjie Ren, Ashok K. Mishra, Stefan Hirsch

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

Agricultural insurance is a significant driver of agricultural development worldwide. In this paper, a fixed-effects panel approach and instrumental variable regressions are used to examine the impact of agricultural insurance on agricultural output in China. The study is based on panel data from 31 Chinese provinces over the period 2004 to 2018. Findings indicate that agricultural insurance led to a significant increase in aggregate agricultural output across provinces. The results remain robust when potential endogeneity in insurance uptake is considered. In addition, mechanism tests were performed to identify the channels through which insurance influences productivity. These show that agricultural insurance contributes to increasing labor productivity and the area of cultivated land per capita and encourages specialized planting, all of which promote growth in agricultural production. Finally, agricultural insurance plays a more important role in Eastern China and nonmajor crop-producing areas [EconLit Citations: Q13, Q18].

Original languageEnglish (US)
Pages (from-to)923-945
Number of pages23
JournalAgribusiness
Volume38
Issue number4
DOIs
StatePublished - Oct 1 2022

Keywords

  • Chinese provinces
  • aggregate analysis
  • agricultural insurance
  • panel data
  • production efficiency

ASJC Scopus subject areas

  • Food Science
  • Geography, Planning and Development
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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