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Does agricultural insurance promote primary industry production? Evidence from a quasi-experiment in China

Author

Listed:
  • Yugang Ding

    (Peking University)

  • Cheng Sun

    (Guanghua School of Management, Peking University)

Abstract

Whether agricultural insurance promotes primary industry production has been debated for decades. Our paper studies this question based on the agricultural insurance premium subsidy policy in China. We use this quasi-experiment to conduct difference-in-differences and event study estimations. We find that the development of agricultural insurance, induced by premium subsidies, significantly promotes primary industry production; per person, it increases by CNY 1430 in subsidised provinces compared to unsubsidised provinces. We use county-level data to address the aggregation problem in our province-level analysis and obtain the same conclusion. We also find that agricultural insurance primarily affects agriculture and husbandry among the four subindustries of the primary industry.

Suggested Citation

  • Yugang Ding & Cheng Sun, 2022. "Does agricultural insurance promote primary industry production? Evidence from a quasi-experiment in China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(2), pages 434-459, April.
    • Handle: RePEc:pal:gpprii:v:47:y:2022:i:2:d:10.1057_s41288-020-00198-z
    DOI: 10.1057/s41288-020-00198-z
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    Cited by:

    1. Shaolong Zeng & Bingying Qi & Minglin Wang, 2022. "Agricultural Insurance and Agricultural Economic Growth: The Case of Zhejiang Province in China," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    2. Shipeng Yang & Wanxiang Xu & Yuxuan Xie & Muhammad Tayyab Sohail & Yefang Gong, 2023. "Impact of Natural Hazards on Agricultural Production Decision Making of Peasant Households: On the Basis of the Micro Survey Data of Hunan Province," Sustainability, MDPI, vol. 15(6), pages 1-19, March.

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