Evaluation Research On Rural Financial Efficiency In China Based On DEA Method

With China accelerating the development of agricultural modernization, the improvement of rural financial efficiency will promote the development of rural economy. The rural financial development is the core of rural economic development, it plays an important supporting role on the farmers’living, and therefore researching on the efficiency of rural finance is very important.This paper uses DEA method to analyze the rural financial efficiency by collecting2001county-level cities and counties’ input-output efficiency data of rural finance, and further analyzes the factors affecting the efficiency of rural finance. It finds out that the overall level of rural financial comprehensive efficiency is low in the research, that means rural financial resources are not be made full use. The technical efficiency of rural finance level is low, namely the efficiency of the rural financial system in China and the management level of rural financial institutions is low. Although compared with the technical efficiency, scale efficiency is relatively high, there is a gap between the optimal level. Namely compared with management level, the input scale of the rural financial resources is suitable for the level of economic development. From view of geographical point, utilization efficiency in the western region is little higher than the central and eastern regions. The external environment has a big significant influence on operation efficiency of rural financial system and management level in the western region, so the western region has a certain late-developing advantage. There is a redundancy problem of input rural financial resources in central and western regions, a large number of rural financial capital investment is not adapted to the level of region’s economic development. From the perspective of the external environment, the main reason that causes low rural finance efficiency is the low technical efficiency and scale efficiency, not the external environment. Namely, the low running efficiency of rural financial system, low financial management level, the mismatching between the investment of rural financial resources and economic development, that leads to the low utilization efficiency of the rural financial resources. The external environment has a significant influence on the technical efficiency and scale efficiency. That is saying external environment (economic factors, industrial structure, the degree of culture, etc)has a significant on whether the rural financial resources investment is adapted to the needs of economic development or not, running efficiency of the rural financial system and the level of management.Based on the conclusion of the empirical analysis, and add to the present situation of the rural financial development in our country. This paper puts forward to promote the innovation of the rural financial system, establish rural credit system and strengthen education, and raise the cultural level of rural residents. This research deeply discusses the current rural financial efficiency and factors of it, that is to make reasonable suggestions to improving the level of management efficiency of rural and environment.