Does cross-border e-commerce pilot zone policy reduce financing costs for SMEs?: Evidence from a multi-period DID approach in China

This study examines the impact of China’s Cross-Border E-Commerce Pilot Zone (CBECPZ) policy on small- and medium-sized enterprise (SME) financing costs. Using 2010–2024 data, we find that the policy significantly reduces financing costs, especially in non-dividend-paying firms and early implementation batches. Asset tangibility and liquidity partially mediate this effect, with robustness checks showing reduced deleveraging and short-term debt reliance. The efficacy diminishes in the later phases, indicating regional disparities. Digital customs platforms reduce information asymmetry. The findings show that the CBECPZ policy eases SME financing constraints and the need for targeted infrastructure.