Evaluation of primary-level credit environment, indicator system and empirical analysis: A case study of credit construction in China county and district

Townships (towns, streets) represent the foundational layer of China's administrative structure, and the quality of their credit environment is crucial for underpinning the development of a primary-level social credit system. This initiative aims to accelerate the establishment of the social credit system and cultivate a trustworthy economic and social environment. Starting from the three major fields of government, business and society, and focusing on integrity culture and credit innovation, the article proposes an innovative evaluation framework for primary-level credit environment and it can become a point of reference as a policy tool in international evaluation programs. Using clustering and the coefficient of variation methods, we quantitatively refine our indicator system, establishing a set of criteria to assess the primary-level credit environment. We incorporate hierarchical analysis, the entropy weight method, and machine learning models to conduct a comprehensive evaluation of the credit environments within 24 townships (towns, streets) of Fuyang District in Hangzhou City for the year 2023. The findings underscore the need for a realistic appraisal of the current state and deficiencies of the primary-level credit environment. We advocate for the bolstering of credit development within governmental, business, and societal realms. It's imperative to leverage the normative influence of honesty and integrity culture, enhance the breadth and application of credit innovations, and thereby foster the high-quality growth of the primary-level social credit system.