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Performance of China's rural supply chain finance: from the perspective of maximization of intermediate output

Xiaohong Liu (University of Science and Technology of China, Hefei, China)
Yue Du (School of Business, Soochow University, Suzhou, China) (Jiangsu Center for Research in Contemporary Finance at Soochow University, Suzhou, China) (The Grand Canal Cultural Belt Construction Research Institute, Soochow University, Suzhou, China)
Jiasen Sun (School of Business, Soochow University, Suzhou, China) (Jiangsu Center for Research in Contemporary Finance at Soochow University, Suzhou, China) (The Grand Canal Cultural Belt Construction Research Institute, Soochow University, Suzhou, China)
Rui Yang (School of Business, Soochow University, Suzhou, China) (Jiangsu Center for Research in Contemporary Finance at Soochow University, Suzhou, China) (The Grand Canal Cultural Belt Construction Research Institute, Soochow University, Suzhou, China)
Feng Yang (School of Management, University of Science and Technology of China, Hefei, China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 30 November 2020

Issue publication date: 29 March 2021

432

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

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