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The Effect of Microinsurance on Investment Levels among Farmers

Sturesson, Adam LU (2016) EXTM10 20142
Department of Economics
Abstract
Variable incomes and under-investment due to risks of economic loss is an often overlooked aspect of poverty. Affordable insurance against risks such as loss of harvest due to low rainfall may be a key factor in reducing poverty. This study aims to examine the relationship between microinsurance against weather-related risks and levels of investment among covered farmers. The analysis is done by reviewing relevant literature, by developing a model of a farmer’s investment decisions and by distributing a survey among farmers in and around Choma in Zambia. The analysis finds that provision of microinsurance is positively correlated with investment in farmland and new types of crops. The findings support the view that farmers are more... (More)
Variable incomes and under-investment due to risks of economic loss is an often overlooked aspect of poverty. Affordable insurance against risks such as loss of harvest due to low rainfall may be a key factor in reducing poverty. This study aims to examine the relationship between microinsurance against weather-related risks and levels of investment among covered farmers. The analysis is done by reviewing relevant literature, by developing a model of a farmer’s investment decisions and by distributing a survey among farmers in and around Choma in Zambia. The analysis finds that provision of microinsurance is positively correlated with investment in farmland and new types of crops. The findings support the view that farmers are more inclined to allocate resources into more productive assets when some risks are mitigated. (Less)
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author
Sturesson, Adam LU
supervisor
organization
course
EXTM10 20142
year
type
H2 - Master's Degree (Two Years)
subject
keywords
microinsurance, insurance, investment, Zambia, Choma
language
English
id
8877233
date added to LUP
2016-06-09 12:45:27
date last changed
2016-06-09 12:45:27
@misc{8877233,
  abstract     = {Variable incomes and under-investment due to risks of economic loss is an often overlooked aspect of poverty. Affordable insurance against risks such as loss of harvest due to low rainfall may be a key factor in reducing poverty. This study aims to examine the relationship between microinsurance against weather-related risks and levels of investment among covered farmers. The analysis is done by reviewing relevant literature, by developing a model of a farmer’s investment decisions and by distributing a survey among farmers in and around Choma in Zambia. The analysis finds that provision of microinsurance is positively correlated with investment in farmland and new types of crops. The findings support the view that farmers are more inclined to allocate resources into more productive assets when some risks are mitigated.},
  author       = {Sturesson, Adam},
  keyword      = {microinsurance,insurance,investment,Zambia,Choma},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Effect of Microinsurance on Investment Levels among Farmers},
  year         = {2016},
}