Evaluating disparities and convergence of financial support efficiency for resource recycling industry in China

Resource recycling industry is a new carrier of high-quality economic development in China which is crucial for the promotion of circular economy. However, the sustainable development of this industry cannot be achieved without huge and stable support from financial system. This paper calculates the financial support efficiency (FSE) of listed companies in this industry, explores FSE disparities among companies in different sub-industries and with different types of property right, and finally carries out the convergence test of FSE. It is found that the overall FSE of China's resource recycling industry was good (0.849) during 2016-2020, but showed a slight downward trend. The deterioration of technical efficiency was the main reason of decline. Significant differences of FSE existed among companies in different sub-industries, in which the efficiency value of Comprehensive Utilization of Mineral Resources Industry was the highest, and that of Comprehensive Utilization of Urban and Rural Domestic Waste Industry was the lowest. FSE of non-state-owned companies was higher than that of state-owned companies. The hypervariable density was the main source of sub-industry difference, and the difference within property right type was the main source of property right difference. The entire industry, every sub -industry, and both types of property right, did not show sigma convergence. The entire industry and four sub-industries showed absolute beta convergence. All sub-industries except Resource Recycling and Utilization Equip-ment Manufacturing Industry showed conditional beta convergence. Both types of property right showed absolute and conditional beta convergence. Several suggestions are finally proposed to improve FSE of the industry.