The coordinated impacts of agricultural insurance and digital financial inclusion on agricultural output: Evidence from China

Abstract

The coordinated development of agricultural insurance and digital financial inclusion is crucial to agricultural production, previous research on the subject is unclear. Based on the data of some provinces in China from 2011 to 2019, the entropy method is used in this paper to construct indexes measuring the development of agricultural insurance and digital financial inclusion. Their coupling coordination index is calculated, and the basic characteristics of the coupling coordination degree are analyzed. The influence of the coupling coordination degree of agricultural insurance and digital financial inclusion on agricultural output is empirically analyzed by constructing a regression model. The results show that the coupling coordination degree of agricultural insurance and digital financial inclusion significantly improves farmers' agricultural output, and the promotion effect is more prominent in eastern China and mountainous areas. And the threshold effect analysis show that there is a nonlinear relationship between the coupling coordination degree of agricultural insurance and digital financial inclusion on agricultural output. The conclusion of this paper provides a theoretical basis and empirical evidence for the coordinated development of rural financial system and agricultural construction.