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Does cross-border e-commerce pilot zone policy reduce financing costs for SMEs?: Evidence from a multi-period DID approach in China

Year: 2025

Type: article

Abstract: This study examines the impact of China’s Cross-Border E-Commerce Pilot Zone (CBECPZ) policy on small- and medium-sized enterprise (SME) financing costs. Using 2010–2024 data, we find that the policy significantly reduces financing costs, especially in non-dividend-paying firms and early implementation batches. Asset tangibility and liquidity partially mediate this effect, with robustness checks showing reduced deleveraging and short-term debt reliance. The efficacy diminishes in the later phases, indicating regional disparities. Digital customs platforms reduce information asymmetry. The findings show that the CBECPZ policy eases SME financing constraints and the need for targeted infrastructure.

Source: Finance research letters

DOI: 10.1016/j.frl.2025.108328

Authors: Wenying Fang, Qian Xu

Institutions: Zhejiang Technical Institute of Economics, Shanghai University of Finance and Economics

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,730