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Publications
  • 2017
  • Article
  • Annual Review of Economics

Agricultural Insurance and Economic Development

By: Shawn A. Cole and Wentao Xiong
  • Format:Print
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Abstract

This article provides a review of recent research on agricultural insurance (AI) in developing countries. Agricultural producers face a variety of significant risks; historically, only government-subsidized products have achieved widespread adoption. A recent contractual innovation, which links insurance payouts to realized weather rather than farmer indemnity, has spurred substantial research in the past decade. This review begins by describing the experience in developed economies and then turns to developing countries, covering the following topics: farmers' adoption of AI, how AI affects their decision to invest in risky assets, and the extent to which AI helps farmers smooth income and consumption. We conclude with suggestions for future research and practice related to AI in developing countries.

Keywords

Agribusiness; Insurance; Developing Countries and Economies; Adoption; Risk Management; Research; Agriculture and Agribusiness Industry

Citation

Cole, Shawn A., and Wentao Xiong. "Agricultural Insurance and Economic Development." Annual Review of Economics 9 (2017): 235–262.
  • Find it at Harvard

About The Author

Shawn A. Cole

Finance
→More Publications

More from the Authors

    • September 2025
    • Journal of Development Economics

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More from the Authors
  • Using Satellites and Phones to Evaluate and Promote Agricultural Technology Adoption: Evidence from Smallholder Farms in India By: Shawn Cole, Tomoko Harigaya, Grady Killeen and Aparna Krishna
  • Getting to Net Zero: The Role of the Financial Sector By: Shawn Cole, Jonah Zahnd, Karina Chung and Jack Cenovic
  • Using Satellites and Phones to Evaluate and Promote Agricultural Technology Adoption: Evidence from Smallholder Farms in India By: Shawn Cole, Grady Killeen, Tomoko Harigaya and Aparna Krishna
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