Agricultural insurance and agricultural performance: granger causality test: An application in France

This article tries to show the existence of the causality between the agricultural performance and the development of the agricultural insurance and this by resorting to an econometric approach using Granger Causality Test. This econometric analysis is made over the period 2000-2012 for one of the European country to know, France. We found interesting results in this connection which reflect the state of the agricultural insurance and the implications of its use to allow the preservation of the agricultural performance. Besides, we showed in term of causality the implications of the application of the agricultural modalities of risk management on the agricultural performance. By applying all of the tests, we show the existence of a causality between the agricultural performance and the development of the agricultural insurance which is measured by the penetration in the agricultural insurance. And this causality is valid in France between 2000-2012. We find a unidirectional causality between the development of agricultural insurance and agricultural performance, a causality which remains true in the short and long term so we can adopt the model estimated for projected effects. In this result is added a causality which puts in relation the action of the State by direct helps granted to the insurants in the form of subsidies of the premiums of agricultural insurance and their effects on the agricultural performance. For these causalities, are added other relations appropriate to every country or for two countries together.