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

Abstract

Chinese rural credit cooperatives (RCCs) are a major supplier of credit to the rural sector in China. However, Chinese RCCs are currently encountering operating problems, and experimental reform is occurring to restructure 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 non-parametric techniques. The use of a bootstrap algorithm allows for inference on efficiency measures.

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