Does Chinese policy banks' overseas lending favor Belt Road Initiative countries?
Abstract This paper examines how Chinese policy banks responded to China's Belt Road Initiative (BRI) using transaction‐level international syndicated loan data. Employing a difference‐in‐differences (DID) estimation, we show that Chinese policy banks increased aggregate lending (number of loan...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2022-12-01
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| Series: | International Studies of Economics |
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| Online Access: | https://doi.org/10.1002/ise3.8 |
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| _version_ | 1832086600251604992 |
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| author | Xin Chen Heyang Fang Yun Liu Yifei Zhang |
| author_facet | Xin Chen Heyang Fang Yun Liu Yifei Zhang |
| author_sort | Xin Chen |
| collection | DOAJ |
| description | Abstract This paper examines how Chinese policy banks responded to China's Belt Road Initiative (BRI) using transaction‐level international syndicated loan data. Employing a difference‐in‐differences (DID) estimation, we show that Chinese policy banks increased aggregate lending (number of loans and loan amounts) to firms from the BRI countries compared to those from the non‐BRI countries after the initiative. This increase was more pronounced among firms along the continental route and in the infrastructure sectors. We also find that Chinese policy banks' loans to the BRI borrowers were associated with reduced spread, lowered collateral requirement, and extended maturity. Moreover, our results suggest that Chinese policy banks gave more support to firms from the BRI countries with weaker economic performance, more fragile institutional quality, and closer political interests. Overall, our study highlights the supportive role played by Chinese policy banks in implementing a national globalization strategy. |
| format | Article |
| id | doaj-art-d3fb4df415f8439d9016dca98a0543fa |
| institution | Kabale University |
| issn | 2831-3224 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Studies of Economics |
| spelling | doaj-art-d3fb4df415f8439d9016dca98a0543fa2025-02-06T11:40:41ZengWileyInternational Studies of Economics2831-32242022-12-0117443045810.1002/ise3.8Does Chinese policy banks' overseas lending favor Belt Road Initiative countries?Xin Chen0Heyang Fang1Yun Liu2Yifei Zhang3Department of Economics Lingnan University Hong Kong SAR ChinaThe Asian Banker Beijing ChinaSchool of Finance Shanghai Lixin University of Accounting and Finance Shanghai ChinaSchool of Accounting and Finance, Faculty of Business The Hong Kong Polytechnic University Hong Kong SAR ChinaAbstract This paper examines how Chinese policy banks responded to China's Belt Road Initiative (BRI) using transaction‐level international syndicated loan data. Employing a difference‐in‐differences (DID) estimation, we show that Chinese policy banks increased aggregate lending (number of loans and loan amounts) to firms from the BRI countries compared to those from the non‐BRI countries after the initiative. This increase was more pronounced among firms along the continental route and in the infrastructure sectors. We also find that Chinese policy banks' loans to the BRI borrowers were associated with reduced spread, lowered collateral requirement, and extended maturity. Moreover, our results suggest that Chinese policy banks gave more support to firms from the BRI countries with weaker economic performance, more fragile institutional quality, and closer political interests. Overall, our study highlights the supportive role played by Chinese policy banks in implementing a national globalization strategy.https://doi.org/10.1002/ise3.8Belt Road InitiativeChinese policy banksglobal syndicated loans |
| spellingShingle | Xin Chen Heyang Fang Yun Liu Yifei Zhang Does Chinese policy banks' overseas lending favor Belt Road Initiative countries? International Studies of Economics Belt Road Initiative Chinese policy banks global syndicated loans |
| title | Does Chinese policy banks' overseas lending favor Belt Road Initiative countries? |
| title_full | Does Chinese policy banks' overseas lending favor Belt Road Initiative countries? |
| title_fullStr | Does Chinese policy banks' overseas lending favor Belt Road Initiative countries? |
| title_full_unstemmed | Does Chinese policy banks' overseas lending favor Belt Road Initiative countries? |
| title_short | Does Chinese policy banks' overseas lending favor Belt Road Initiative countries? |
| title_sort | does chinese policy banks overseas lending favor belt road initiative countries |
| topic | Belt Road Initiative Chinese policy banks global syndicated loans |
| url | https://doi.org/10.1002/ise3.8 |
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