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Fintech, Financial Constraints and OFDI: Evidence from China

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Listed:
  • Kui Wang
  • Yang Hu
  • Jing Zhou
  • Feng Hu

Abstract

We examined how Fintech affects Chinese firms’ OFDI. By using the regional Fintech index, we identified potential channels through which Fintech affects firms’ OFDI. We show that firms that are more financially constrained exhibit a disproportionally higher OFDI level in cities with better-developed Fintech services. We further find that Fintech development promotes lending to firms and facilitates OFDI because Fintech intensifies bank loan competition. Our research emphasises the importance of financial innovation driven by technology on the behaviour of enterprise internationalisation.

Suggested Citation

  • Kui Wang & Yang Hu & Jing Zhou & Feng Hu, 2023. "Fintech, Financial Constraints and OFDI: Evidence from China," Global Economic Review, Taylor & Francis Journals, vol. 52(4), pages 326-345, October.
    • Handle: RePEc:taf:glecrv:v:52:y:2023:i:4:p:326-345
    DOI: 10.1080/1226508X.2023.2283878
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