Performance of China's rural supply chain finance: from the perspective of maximization of intermediate output
Industrial Management & Data Systems
ISSN: 0263-5577
Article publication date: 30 November 2020
Issue publication date: 29 March 2021
Abstract
Purpose
To dilute the financial difficulties in agricultural production and operation, the Chinese government has actively explored and developed rural supply chain finance (RSCF) service systems. The purpose of this study is to evaluate and analyze the performance of RSCF systems in China.
Design/methodology/approach
To evaluate the performance of RSCF systems in China, this study proposes a two-stage data envelopment analysis model. Compared with other models, the model proposed in this study considers not only the technical gap between RSCF systems but also the maximization of intermediate output to conform to the practice of RSCF.
Findings
Based on the empirical analysis, this study draws the following four conclusions. First, the overall efficiency of China's RSCF systems is low, and there remains great potential for improvement. Second, the technology gap ratio index score and meta-frontier efficiency of RSCF systems in Central China are the lowest in all regions, indicating that the technical level of RSCF systems in Central China is the lowest. Third, the relationship between rural residents' disposable income and the efficiency of RSCF systems is U-shaped, and the efficiency of RSCF systems in the high-income group is far greater than that of other income groups. Finally, the main reason for the lack of efficiency in RSCF seems to lie in management and technology.
Originality/value
This study divides all RSCF systems into four types according to management potential and technical potential, and recommend corresponding improvement suggestions for different kinds of RSCF systems.
Keywords
Acknowledgements
This research is partially supported by the National Natural Science Foundation of China (Grant Nos. 71631006, 71871153, 71971203, 71571173 and 71921001), the Four Batch Talent Programs of China, the Fundamental Research Funds for the Central Universities, and National Social Science Foundation of China (no. 19BGL025). Jiasen Sun thanks the sponsorship of the Tang Scholar of Soochow University.
Citation
Liu, X., Du, Y., Sun, J., Yang, R. and Yang, F. (2021), "Performance of China's rural supply chain finance: from the perspective of maximization of intermediate output", Industrial Management & Data Systems, Vol. 121 No. 4, pp. 705-723. https://doi.org/10.1108/IMDS-07-2020-0386
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited