Researchers at Chinese Academy of Agricultural Sciences Have Published New Study Findings on Agricultural Insurance (The Impact of Agricultural Insurance on Urban-Rural Income Gap: Empirical Evidence from China): Agriculture – Agricultural Insurance

2023 NOV 14 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in agricultural insurance. According to news reporting originating from Beijing, People’s Republic of China, by NewsRx correspondents, research stated, “Based on the panel data of 31 provinces in China from 2005 to 2020, this paper analyzes the mechanism and spatial spillover effect of agricultural insurance on the urban-rural income gap using a fixed effect model, an intermediary effect model, and a two-stage least square method.”

The news correspondents obtained a quote from the research from Chinese Academy of Agricultural Sciences: “The results show that agricultural insurance has a significant inhibitory effect on the income gap between urban and rural areas. This inhibitory effect is realized through the path of ‘improving the development level of agricultural insurance-improving agricultural total factor productivity-reducing the income gap between urban and rural areas’, in which the intermediary effect of agricultural total factor productivity accounts for 19.74% of the total effect. At the same time, the income gap between urban and rural areas in China exhibits typical spatial agglomeration characteristics. The western region has always been the region with the largest income gap between urban and rural areas, while the eastern region is the region with the smallest income gap between urban and rural areas. The development of agricultural insurance has had a spatial spillover effect on the income gap between urban and rural areas, and the development of agricultural insurance in neighboring areas expands the income gap between urban and rural areas in this region. In order to prevent the siphon effect, agricultural insurance investment should be increased in the neighboring regions.”

According to the news reporters, the research concluded: “The results of this paper support the view of the resource flow model. Finally, we put forward some suggestions for the development of agricultural insurance, improvement in agricultural total factor productivity, and the narrowing of the income gap between urban and rural areas.”

For more information on this research see: The Impact of Agricultural Insurance on Urban-Rural Income Gap: Empirical Evidence from China. Agriculture, 2023,13(1950):1950. (Agriculture - http://www.mdpi.com/journal/agriculture). The publisher for Agriculture is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/agriculture13101950.

Our news editors report that more information may be obtained by contacting Saisai Wen, State Key Laboratory of Efficient Utilization of Arid and Semi-Arid Arable Land in Northern China, Institute of Agricultural Resources and Regional Planning, Chinese Academy of Agricultural Sciences, Beijing 100081, People’s Republic of China. Additional authors for this research include Qin Xiao, Junjie Li, Jianping Li.

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