The Influence of Cross-border E-commerce Comprehensive Pilot Zone on Corporate Financial Constraints in China

Cross-border e-commerce (CBEC), as an emerging mode of cross-border trade, has become a new driver of economic growth, so the Chinese government has established 165 comprehensive pilot zones within which entrepreneurs are provided tax incentives, accelerated return, and exchange procedures for promoting development. This study utilized a longitudinal dataset of A-share-listed enterprises in China from 2011 to 2020 and exploited regional and temporal variations to identify the impacts of establishing the experimental zone on regional enterprises with DiD approach. Estimates show it has eased local enterprises' financial constraints by enhancing exports, digitalization, and industrial agglomeration. Heterogenous examination presents different effects across regions. Financing constraints are more effectively alleviated in eastern provinces, non-sub-provincial cities, and municipalities directly under the central government. This research highlights the significance of promoting CBEC through establishing pilot zones and the importance of policy designs in relaxing financial constraints, particularly for periods of economic recession.