Globalization blueprint and households’ fintech debt: Evidence from China’s One Belt One Road initiative


Research output: Journal PublicationsJournal Article (refereed)peer-review

4 Citations (Scopus)


How do households’ Fintech borrowings respond to a country’s globalization initiative? It is intriguing to study whether Fintech market participants would form their expectations in the wake of a national strategy and thus affect their contemporaneous Fintech borrowings. In this paper, we investigate this question through China’s One Belt One Road initiative (OBOR) using transaction-level Peer-to-Peer (P2P) loan data. The difference-in-differences estimates, consistent with our theoretical framework, show that borrowers from China’s OBOR node-cities, especially the financially constrained ones, increase their Fintech loans instantaneously after the policy announcement. Such effects are more pronounced for borrowers from the infrastructure-related industries, the state-owned enterprises, and the silk-belt (land-based) node-cities. Our ex-post analysis indicates that the default rate of the borrowers from the OBOR node-cities is significantly lower. Finally, we find borrowers residing in the cities close to the node-cities also increase their Fintech leverages, showing a perceived positive externality of the policy initiative.
Original languageEnglish
Pages (from-to)38-55
Number of pages18
JournalInternational Review of Economics and Finance
Early online date15 Jan 2022
Publication statusPublished - May 2022

Bibliographical note

Funding Information:
Dr. Yun Liu (corresponding author) acknowledges the support by the Humanities and Social Science Youth Project of Ministry of Education [grant no. 19YJC790087 ]; the Shanghai Pujiang Program [grant no. 18PJC086 ]. Dr. Yifei Zhang acknowledges the support by The Hong Kong Polytechnic University Start-up Fund [grant no. P0036258 ].

Publisher Copyright:
© 2022 Elsevier Inc.


  • Peer-to-Peer crowdfunding
  • The Belt Road Initiative

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