EconPapers    
Economics at your fingertips  
 

Does service trade liberalization relieve manufacturing enterprises’ financial constraints? Evidence from China

Shuijun Peng, Zhongqiao Shu and Wencheng Zhang

Economic Modelling, 2022, vol. 106, issue C

Abstract: A growing body of literature has discussed the effect of service trade liberalization on external financial constraints of enterprises in China. Based on a dataset of Chinese manufacturing firms and service trade restriction indices, we contribute to this discussion by analyzing how service trade liberalization affects financial constraints of Chinese enterprises through altering their ability to access external financing, as well as internal financing and commercial credit financing. We find that service trade liberalization alleviates financial constraints of Chinese enterprises through strengthening their ability to obtain both external and internal financing. There exist heterogeneous outcomes for different types of firms. While service trade liberalization eases exporters’ financial constraints, it deteriorates financial constraints of non-exporters through tightening their commercial credit financing. In addition, non-SOEs or SMEs gain from service trade liberalization through easing internal and external financing constraints while SOEs or large enterprises lose due to tightening commercial credit financing constraints.

Keywords: Service trade liberalization; Financial constraints; Manufacturing firms; SMEs (search for similar items in EconPapers)
JEL-codes: F13 G28 O10 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999321002996
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:ecmode:v:106:y:2022:i:c:s0264999321002996

DOI: 10.1016/j.econmod.2021.105710

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

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

 
Page updated 2024-02-12
Handle: RePEc:eee:ecmode:v:106:y:2022:i:c:s0264999321002996