The market efficiency and the sustainable development of Chinese microcredit: analyses based on DEA

On the sustainable development of microcredit, some scholars emphasize the effect of its poverty alleviation, while some scholars emphasize the factors such as institutional innovation and government support. This paper argues that, because of double goals, namely, poverty alleviation and profitability, if there is no normal profit, the function of poverty alleviation is difficult to maintain. Therefore, profitability and market operation efficiency are the key to sustainable development of microcredit. First, we deduce the market conditions of the profitability of microcredit, and then use DEA technology to measure the market efficiency of microcredit, including technology efficiency (crste), pure technology efficiency (vrste) and scale efficiency (scale). The results show that the market efficiency of Chinese microcredit is low, so it is difficult for Chinese microcredit to sustainable development it cannot have sustainable development.