Operating Efficiency Evaluation On The Policy Guarantee Corporation In Shanxi Province

Nowadays, the small and medium enterprises (SMEs) have become theimportant part of the national economy. They contribute to technological innovation,and play an important role in economic development. But many factors restrict thedevelopment of SMEs, and hard financing of SMEs is the world long term problem.In both developed and developing countries, credit guarantee agency is an effectiveway to solve the financing difficulty. There is a type of guarantee corporations calledpolicy guarantee corporations, which has features of government funding and marketoperation, it is easy to organize, manage, and raise funds. This kind of corporationsleads and promotes the development of credit guarantee market. Therefore, the studyof how policy guarantee corporations work has significant meaning to a country orregion’s credit guarantee system construction. Policy guarantee corporations shouldhave two objectives: one is getting profits, the other is increasing loans to SMEs, andbenefit social economy development indirectly. This paper uses DEA method toevaluate the operating efficiency of the provincial policy guarantee corporations inShanxi from two perspectives. The main work is as follows:First, taking the evaluating index in early literatures as references andcombining the characteristics of credit guarantee agencies, I establish the evaluatingindex system to evaluate the operation efficiency of the policy guarantee corporations.Second, select40policy guarantee corporations in Shanxi province as the objectof study. Analysis three consecutive years (2009-2011years) the operation efficiencyof the empirical. Use DEA method to analysis the policy guarantee corporations’ DEA efficiency, no source of efficiency, distribution, development trend and the differencesin efficiency levels among regions, from both economic and social benefitsperspectives. The study shows that the operating efficiency of the policy guaranteecorporations in Shanxi Province is generally low, but in an increasing trend.Third, give some advices of future improvement and development according tothe empirical study. Divide the guarantee agencies into40groups according to theresults of empirical analysis, and give suggestions to each group according to itsoperating efficiency level. Make further suggestions to common problem of policyguarantee corporations’ problems in Shanxi.