Abstract
This paper examines how credit information sharing affects firms' export performance and participation in the global value chain (GVC). We exploit a natural experiment in China, where the government launched the Credit Demonstration City Construction (CDCC) program in 2015–2016 to improve credit information sharing and usage based on big data. Using a difference-in-differences approach, we find that the CDCC program improved credit market outcomes and enhanced firms' export activities. Moreover, we show that the CDCC program increased the foreign value added of exporters and facilitated their integration into the GVC. We provide some suggestive evidence for the mechanism that the CDCC program eased firms' financial constraints. Our findings demonstrate the potential benefits of big-data-based policy interventions in improving credit market outcomes and fostering firms' international business activities.
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