Unveiling the role of agricultural insurance in driving rural industry revitalization in China

This study aims to investigate the influence of agricultural insurance on the development of the agricultural industry. Employing the functional decomposition approach in systems engineering, we analyze the mechanisms by which agricultural insurance affects the development of rural industries. Additionally, we conduct an empirical analysis using panel data from Chinese provinces between 2011 and 2019, employing a two-way fixed effects model. The findings reveal a substantial and positive impact of agricultural insurance on the development of rural industries. Furthermore, we identify regional heterogeneity in the influence of agricultural insurance on rural industry development. Specifically, in major grain-producing provinces, the effect of agricultural insurance on rural industry development is not statistically significant. In contrast, non-grain-producing provinces experience a significantly positive impact on rural industry development from agricultural insurance. The outcomes of this study offer valuable insights for policymakers to promote rural industry development through the effective utilization of agricultural insurance.