Impact of Agricultural Insurance on Agricultural Output: A Case Study of Shandong Province

Abstract

Agricultural output plays a crucial role in the quality and level of agricultural development, contributing significantly to ensuring food security and promoting the coordinated development process of rural revitalization. Shandong Province, as a major agricultural province with a large agricultural population and vast arable land, is utilized as a case study. This paper employs panel data from 16 prefecture-level cities in Shandong Province from 2012 to 2021 and employs a fixed effects model to empirically examine the impact of agricultural insurance on agricultural output and regional heterogeneity. The study indicates a significant positive effect of agricultural insurance on agricultural output, along with a positive promotion relationship between mechanization level and agricultural output. Agricultural insurance demonstrates a significant positive correlation with agricultural output in eastern and western regions, but its impact on agricultural output in central regions is not significant. The study suggests focusing on coordinated regional development, appropriately favoring central regions to alleviate the development imbalance across regions.