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

Dong, Fengxia; Featherstone, Allen M.

doi:10.1080/14765280600551240

Cited by 30 publications

(25 citation statements)

References 26 publications

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“…Because of high operational costs (such as those related to screening, monitoring, and enforcement), high financial risk (such as risks due to moral hazard, few assets for collateral [2], and client's income stability), and low returns (because of interest ceilings set by the government) (Dong and Featherstone, 2006), formal financial institutions have strict requirements for rural loans and limited lending.…”

Section: Formal Credit Marketsmentioning

confidence: 99%

Effects of credit constraints on household productivity in rural China

Dong

Lü

Featherstone

2012

Agricultural Finance Review

Self Cite

118

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Purpose -The purpose of this paper is to examine the effect of credit constraints on agricultural productivity in China. Design/methodology/approach -Using data from a rural financial survey, a switching regression model is used to account for endogeneity and heterogeneity. Carter presents three ways that credit might affect the production functions; a shift along a given production surface by allowing an optimal level of inputs, a shift the production surface out by allowing the purchase of more efficient inputs, and the third is to increase net revenue by more intensive use of fixed inputs and resources. Thus, the effects of factors on agricultural productivity may not be independent of credit status; therefore, separate functions for credit-constrained and non-constrained households are examined. Findings -Empirical estimates of the impacts of credit constraints on agricultural productivity are provided for the Heilongjiang province, a major agricultural production area, in Northeast China. By removing credit constraints, average agricultural productivity was estimated to be increased by 75 percent. Under credit constraints, labor inputs, along with a farmers' education, cannot be fully employed because of an inappropriate mix of inputs. Research limitations/implications -Young farmers may not be able to leverage their comparative advantage for physically intensive farm work under credit constraints. Because of data limitations, the research does not include information on informal credit in the estimation, which may underestimate the effects of credit constraints. Originality/value -This study provides an analysis of the impacts of credit constraints on rural household productivity for the Heilongjiang province, a major agricultural production region, in Northeast China.

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Section: Formal Credit Marketsmentioning

confidence: 99%

Effects of credit constraints on household productivity in rural China

Dong

Lü

Featherstone

2012

Agricultural Finance Review

Self Cite

118

View full text Add to dashboard Cite

show abstract

“…Much prior research has found that Chinese rural households suffer from a lack of access to credit (International Fund for Agricultural Development 2001;Luo 2004;Dong and Featherstone 2006;Yu 2008).…”

Section: Credit C O N S T R a I N T S A N D P E N S I O N I N Ruramentioning

confidence: 99%

The Impact of Rural Pensions in China on Labor Migration

Eggleston¹,

Sun²,

Zhan³

2016

World Bank Econ Rev

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“…Dong and Featherstone (2004) suggest further improving the smoothed bootstrap D ** o; j to obtain e D ** o; j , which has an asymptotically correct variance. This is done in the following way…”

Section: Malmquist Productivity Indexmentioning

confidence: 97%