Recent Findings from Istanbul Technical University Provides New Insights into Banking (The Spillover Impact of Index Insurance On Agricultural Investment By Cotton Farmers In Burkina Faso): Finance – Banking

2022 APR 07 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Finance - Banking. According to news originating from Istanbul, Turkey, by NewsRx correspondents, research stated, “This paper examines whether agricultural insurance can boost investment by small scale farmers in West Africa. It is based on a randomized evaluation designed to analyze the impacts of index insurance for cotton farmers in Burkina Faso.”

Funders for this research include United States Agency for International Development, Bilimsel Arastirma Projeleri Birimi, Istanbul Universitesi.

Our news journalists obtained a quote from the research from Istanbul Technical University, “No impact of insurance was found on cotton, but, consistent with microeconomic theory, significant spillover impacts on investment in other agricultural activities were measured. Furthermore, the effects of insurance payouts on farmers hit by a shock confirm the potential of index insurance as a risk-management tool. However, this research uncovers important flaws in the implementation of the project that limited its impact on cotton. Overall, this study suggests a promising role for index insurance in stimulating investment, but also draws attention to key challenges to the efficient delivery of insurance to small farmers.”

According to the news editors, the research concluded: “Finally, the study’s hybrid, mixed methods RCT offers lessons for the evaluation of complex interventions where trust, understanding, and timing are all important.”

This research has been peer-reviewed.

For more information on this research see: The Spillover Impact of Index Insurance On Agricultural Investment By Cotton Farmers In Burkina Faso. The World Bank Economic Review, 2022;36(1):114-140. The World Bank Economic Review can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England.

The news correspondents report that additional information may be obtained from Quentin Stoeffler, Istanbul Technical University, Dept. of Economics, Istanbul, Turkey. Additional authors for this research include Michael Carter, Catherine Guirkinger and Wouter Gelade.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/wber/lhab011. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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