Exploring the spatial linkage network of peer-to-peer lending in China

Zhaohui Chong and Xiaolin Wei

Physica A: Statistical Mechanics and its Applications, 2023, vol. 630, issue C

Abstract: The existing literature on peer-to-peer (P2P) lending focuses on default rates, regulation, the relationship with traditional banks, and its impact on individual and corporate lending behavior, but generally ignores its spatial network characteristics. By extracting the spatial location information from the transaction data of Renrendai, this study constructs the spatial linkage network of P2P lending from 2011 to 2015 and employs social network analysis methods to study the evolution characteristics of the network and its driving factors. The main conclusions are as follows: (1) The spatial linkage network of P2P lending went through a process of expansion to contraction, with a decrease in the number of nodes and linkages and a trend of spatial fragmentation in network communities since 2013. (2) There are differences in the evolutionary driving factors for the formation and dissolution of network relationships. The formation of network relationships is based on variables such as the demand for P2P lending and city size, while the dissolution of network relationships is based on the spread of risks and the ability to resist risks. (3) The results demonstrate that proximities differ in their relative importance for linkage formation and dissolution. Geographic proximity plays a significant role in both models, but cultural proximity and inter-city accessibility only matter in the formation model.

Keywords: FinTech; Social network analysis; Separable temporal exponential random graph model (STERGM); Spatial linkage network (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437123008348
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

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:phsmap:v:630:y:2023:i:c:s0378437123008348

DOI: 10.1016/j.physa.2023.129279

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().