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

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  • Fengxia Dong
  • Allen Featherstone

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.

Suggested Citation

  • Fengxia Dong & Allen Featherstone, 2004. "Technical and Scale Efficiencies for Chinese Rural Credit Cooperatives: A Bootstrapping Approach in Data Envelopment Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications 04-wp366, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  • Handle: RePEc:ias:fpaper:04-wp366
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    References listed on IDEAS

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    Cited by:

    1. Matthews, Kent & Guo, Jianguang & Zhang, Nina, 2007. "Rational Inefficiency and non-performing loans in Chinese Banking: A non-parametric Bootstrapping Approach," Cardiff Economics Working Papers E2007/5, Cardiff University, Cardiff Business School, Economics Section.
    2. Ummad Mazhar & Ceyhun Elgin, 2013. "Environmental Regulation, Pollution and the Informal Economy," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 9, pages 62-81.
    3. Kanybek Nur-tegin, 2007. "Do Transition Economies and Developing Countries Have Similar Destinies?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(3), pages 327-342, September.
    4. Matthews, Kent & Guo, Jianguang & Zhang, Nina & Wang, Lina, 2007. "Bank Efficiency in China, Rent Seeking versus X-inefficiency: A non-parametric Bootstrapping Approach," Cardiff Economics Working Papers E2007/4, Cardiff University, Cardiff Business School, Economics Section, revised Mar 2007.
    5. Kent Matthews & Zhiguo Xiao & Xu Zhang, 2009. "Rational Cost Inefficiency in Chinese Banks," Working Papers 292009, Hong Kong Institute for Monetary Research.
    6. Hans J. Czap & Kanybek D. Nur-tegin, 2011. "Big Bang vs. Gradualism – A Productivity Analysis," EuroEconomica, Danubius University of Galati, issue 29, pages 38-56, August.
    7. You, Jing, 2014. "Risk, under-investment in agricultural assets and dynamic asset poverty in rural China," China Economic Review, Elsevier, vol. 29(C), pages 27-45.
    8. 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.
    9. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    10. Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.

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