Construction of Interest Rate Index of Supply Chain Finance

Abstract

The market-based reform of interest rates has facilitated the advent and development of supply chain finance. The latter then provides solutions toward the difficult and costly financing problems faced by micro-, small- and medium-sized enterprises. Interest rate, a critical means of economic regulation and control, is of certain sensitivity and thus can reflect rapidly the changes in economic development. However, there are relatively few researches on the interest rate concerning supply chain finance at present. First of all, synthetic control method and MI-TVP-SV-VAR model are adopted to calculate the selected variables of supply chain finance based on the overall monitoring goals of supply chain. Then, velocity area principle is quoted to construct the interest rate index of supply chain finance. Furthermore, the functions and application of interest rate index of supply chain finance is prospected.