Can full-cost insurance enhance agricultural economic resilience?

This study examines the first batch of full-cost insurance pilot counties in China as case study areas. The results show that full-cost insurance has a significant positive effect on agricultural economic resilience, improving its three dimensions: resistance capacity, adaptive capacity, and transformative capacity.

Agricultural insurance has proven particularly effective in strengthening resilience against systemic shocks and supporting long-term sustainability. Research indicates that resilience levels differ across countries, influencing their ability to withstand and recover from economic disruptions. The heterogeneity analysis further shows that full-cost insurance significantly improves agricultural economic resilience only in regions with high agricultural risk and output, while its effect is not statistically significant in low-risk and low-output areas. The findings provide empirical evidence of how full-cost insurance contributes to agricultural economic resilience and offer policy guidance for optimizing policy-based agricultural insurance schemes.