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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," Center for Agricultural and Rural Development (CARD) Publications 04-wp366, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:04-wp366
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    3. Matthews, Kent & Xiao, Zhiguo, 2020. "Rational cost inefficiency and convergence in Chinese banks," Economic Modelling, Elsevier, vol. 91(C), pages 696-704.
    4. 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.
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    6. Kent Matthews & Zhiguo Xiao & Xu Zhang, 2009. "Rational Cost Inefficiency in Chinese Banks," Working Papers 292009, Hong Kong Institute for Monetary Research.
    7. 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.
    8. 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.
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    10. 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.
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