The impact of cross-border e-commerce comprehensive pilot zone on corporate financial constraints in China

Cross-border e-commerce (CBEC) has emerged as a transformative force in global trade, offering new pathways for economic growth. The influence of CBEC initiatives on alleviating firm financial constraints remains underexplored empirically, while existing literature predominantly emphasises macroeconomic and operational benefits rather than corporate financing challenges. To address this critical research gap, we examine the impact of 165 CBEC comprehensive pilot zones in China, with supportive policies including tax incentives and streamlined customs procedures, on firm financial constraints. Leveraging a longitudinal dataset of Chinese A-share-listed firms (2011–2020), this study employs a Difference-in-Differences (DiD) approach combined with Propensity Score Matching (PSM-DiD) to assess the causal effect of these pilot zones on firm financial constraints. Our findings demonstrate that the pilot zones significantly alleviate financial constraints by enhancing exports, fostering digital transformation, and promoting industrial agglomeration. Heterogeneity analyses reveal pronounced regional and sectoral variations: firms in eastern provinces, non-sub-provincial and non-municipal cities experience stronger benefits, as do non-export-oriented, high-tech, and non-polluting firms. These results underscore the efficacy of CBEC pilot zones as a policy tool for mitigating financial constraints, particularly during economic downturns, while highlighting the importance of tailored policy designs to maximise impact.