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Technical and Scale Efficiencies for Chinese Rural Credit Cooperatives: A Bootstrapping Approach in Data Envelopment Analysis

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Author Info
Fengxia Dong () (Center for Agricultural and Rural Development (CARD), Food and Agricultural Policy Research Institute (FAPRI))
Allen Featherstone

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Abstract

Chinese rural credit cooperatives (RCCs) are a major supplier of credit to the rural sector in the country. However, Chinese RCCs are currently encountering operating problems, and an experimental reform is being carried out to restructure and reform the RCCs. In order to have some idea about the efficacy of reform, it is important to have an understanding of the institutional economics underlying the delivery of rural credit in China. This paper evaluates pure technical efficiency, overall technical efficiency, and scale efficiencies for RCCs in China using nonparametric techniques. The use of a bootstrap algorithm is proposed to perform inference for efficiency measures.

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Publisher Info
Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 04-wp366.

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Date of creation: Jul 2004
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Handle: RePEc:ias:cpaper:04-wp366

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Related research
Keywords: bootstrapping; Chinese rural credit cooperatives; data envelopment analysis; scale efficiency; technical efficiency.;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Allen N. Berger & Robert DeYoung, 1997. "Problem loans and cost efficiency in commercial banks," Finance and Economics Discussion Series 1997-8, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  2. Despotis, D.K., 2005. "Measuring human development via data envelopment analysis: the case of Asia and the Pacific," Omega, Elsevier, vol. 33(5), pages 385-390, October. [Downloadable!] (restricted)
  3. Wolfgang Hardle & Oliver Linton, 1994. "Applied Nonparametric Methods," Cowles Foundation Discussion Papers 1069, Cowles Foundation, Yale University. [Downloadable!]
    Other versions:
  4. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March. [Downloadable!] (restricted)
  5. Rangan, Nanda & Grabowski, Richard & Aly, Hassan Y. & Pasurka, Carl, 1988. "The technical efficiency of US banks," Economics Letters, Elsevier, vol. 28(2), pages 169-175. [Downloadable!] (restricted)
  6. Lothgren, Mickael & Tambour, Magnus, 1999. "Testing Scale Efficiency in DEA Models: A Bootstrapping Approach," Applied Economics, Taylor and Francis Journals, vol. 31(10), pages 1231-37, October. [Downloadable!] (restricted)
  7. Armah, Bernard K.N. & Park, Timothy A. & Lovell, C.A. Knox, 1999. "Evaluating The Performance Of Agricultural Bank Management: The Impact Of State Regulatory Policies," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(03), December. [Downloadable!]
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  8. Aly, Hassan Y, et al, 1990. "Technical, Scale, and Allocative Efficiencies in U.S. Banking: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 211-18, May. [Downloadable!] (restricted)
  9. P.A.V.B. Swamy & James R. Barth & Ray Y. Chou & John S. Jahera, Jr., 1995. "Determinants of U.S. commercial bank performance: regulatory and econometric issues," Finance and Economics Discussion Series 95-29, Board of Governors of the Federal Reserve System (U.S.).
  10. Allen N. Berger & Anil K. Kashyap & Joseph Scalise, 1995. "The Transformation of the U.S. Banking Industry: What a Long, Strange Trip It's Been," Center for Financial Institutions Working Papers 96-06, Wharton School Center for Financial Institutions, University of Pennsylvania.
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  11. Drake, Leigh & Hall, Maximilian J. B., 2003. "Efficiency in Japanese banking: An empirical analysis," Journal of Banking & Finance, Elsevier, vol. 27(5), pages 891-917, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Matthews, Kent & Xiao, Zhiguo & Zhang, Xu, 2009. "Rational Cost Inefficiency in Chinese Banks," Cardiff Economics Working Papers E2009/13, Cardiff University, Cardiff Business School, Economics Section. [Downloadable!]
  2. Matthews, Kent & Guo, Jianguang & Zhang, Xu, 2008. "X-efficiency versus Rent Seeking in Chinese banks: 1997-2006," Cardiff Economics Working Papers E2008/26, Cardiff University, Cardiff Business School, Economics Section. [Downloadable!]
  3. Kanybek Nur-tegin, 2007. "Do Transition Economies and Developing Countries Have Similar Destinies?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(3), pages 327-342, September. [Downloadable!] (restricted)
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