The non-linear effect of agricultural insurance on agricultural green competitiveness

• Published in: Technology analysis & strategic management Vol. 36; no. 7; pp. 1414 - 1429
• Main Authors: Lu, Fei, Wang, Wuwei, Liu, Minghui, Liu, Mei, Qi, Dingyi
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 02.07.2024; Taylor & Francis Ltd
• Subjects: agricultural green total factor productivity; Agricultural insurance; Agricultural production; Centroids; Competitiveness; DDF-GML index; Emissions; Insurance; Modernization; non-linear effect; Penetration; Ports; Productivity; Robustness; China
• ISSN: 0953-7325; 1465-3990
• DOI: 10.1080/09537325.2022.2098102

Increasing agricultural productivity and reducing carbon emissions are two major challenges that China faces. This paper explores how agricultural insurance affects agricultural green total factor productivity (AGTFP) that addresses these two challenges. First, we adopt DDF-GML to measure AGTFP, and the Dagum's Gini decompositions results show the large differences in AGTFP, with transvariation between subregions contributing the most. Second, we find the U-shaped effect of agricultural insurance on AGTFP in a large country context. The result remains robust after adjusting for time, sample and estimation method of AGTFP. We also construct instrumental variables from the minimum distance from the centroid of counties within a province to the 45 ports in China and two-stage lagged agricultural insurance penetration (AIP) for AIP, and their squares as instrumental variables for AIP 2 . The conclusion remains robust in 2SLS model. Third, the findings confirm three channels for agricultural insurance to influence the AGTFP: environmentally friendly production, labor inputs and operation scale. We further propose policy advice to promote China's agricultural modernization and point out further research directions in this field.