Abstract
ABSTRACT The important historical mission of rural credit cooperatives (RCCs) in China is to “serving agriculture, rural areas, and farmers” so as to achieve sustainable commercial development. Using panel data on eighty-one RCCs in Anhui Province, we examine the relationship between agricultural services and operational performance among RCCs in rural China under different rates of asset growth with a threshold panel model. The results show that the influence of agricultural services on the performance of RCCs is nonlinear, with a significant threshold effect. When the asset growth rate remains moderate, agricultural services improve the commercial performance of RCCs; otherwise, it negatively affects performance. These findings imply that moderate adjustment in the asset growth rate of RCCs is conducive to simultaneous improvement in both agricultural services and commercial performance.
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