Does digital financial inclusion lead to regional differences in trade credit financing?: A quasi-natural experiment

Hengrui Bai, Yiming Wu and Ruiqian Wang

Economic Analysis and Policy, 2023, vol. 80, issue C, 1475-1489

Abstract: The People's Bank of China (PBOC) drafted the G20 High-Level Principles for Digital Financial Inclusion in 2016. Employing these principles in a quasi-natural experiment, we use the difference-in-difference (DID) method to estimate changes in enterprises’ trade credit financing (TCF). The findings are as follows: First, digital financial inclusion (DFI) significantly increases enterprises’ TCF in China's central and western regions, and the policy effect is transmitted through bank credit and the level of digital finance development. Second, DFI's effects on enterprises are heterogeneous with different ownership structures and sizes and in different industries; the promotive effect on TCF is stronger for non-state-owned enterprises (non-SOEs) and nonmanufacturing enterprises, while the policy prohibits the TCF of small and medium enterprises. Third, provincial factors have positive moderating effects on DFI.

Keywords: Digital financial inclusion; Trade credit financing; DFI index; Provincial factor (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592623002710
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1475-1489

DOI: 10.1016/j.eap.2023.10.023

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().