ISBN: 978-981-18-5852-9 DOI: 10.18178/wcse.2022.04.094
Research on the Influence of Agricultural Insurance on Grain Production in Hubei, China Based on Cobb-Douglas Production Function Model
Abstract— This paper uses panel data of 13 cities in Hubei Province, China from 2008 to 2019 to establish a multiple linear regression model with the improved Cobb-Douglas production function, and analyzes the influence of agricultural insurance on grain production in Hubei Province as a whole, in eastern Hubei, and in western Hubei. All of the 3 regression results of the Hubei Province overall model, the eastern model and the western model show that agricultural insurance has a significant positive impact on grain production in Hubei, but the impact is small, and the output elasticity of insurance premiums is only 0.0308. In terms of regional differences, the output elasticity of agricultural insurance in eastern Hubei, which is 0.0314, is smaller than that in western Hubei, i.e., 0.0386. The empirical results indicate that agricultural insurance does have a certain role in guaranteeing grain production in Hubei, but it is very limited. Finally, this paper puts forward some countermeasures in order to cultivate a refined agricultural insurance market, so as to achieve stable agricultural production.
Index Terms— agricultural insurance, grain production, Cobb- Douglas production function, influence.
School of Economics and Management, Hubei University of Automotive Technology, China
Wuhan Industry-Education-Research Center, Hubei University of Automotive Technology, China
School of Business Administration Wuhan Business University, China
Cite: Binghun Wan, Wei Long, " Research on the Influence of Agricultural Insurance on Grain Production in Hubei, China Based on Cobb-Douglas Production Function Model, " WCSE 2022 Spring Event: 2022 9th International Conference on Industrial Engineering and Applications, pp. 797-802, Sanya, China, April 15-18, 2022.