IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v65y2020i06ns0217590820500332.html
   My bibliography  Save this article

Causality Between Peer-To-Peer Lending And Bank Lending In China: Evidence From A Panel Data Approach

Author

Listed:
  • TSUNG-PAO WU

    (School of Accounting and Finance, Beijing Institute of Technology, Zhuhai No. 6 Jinfeng Road, Tangjiawan, Zhuhai City, Guangdong Province, China 519088, China)

  • HUNG-CHE WU

    (Business School, Nanfang College of Sun Yat-Sen University, No. 882 Wenquan Avenue, Conghua District, Guangzhou City, Guangdong Province, China 510970, China)

  • SHU-BING LIU

    (Department of Finance, Shih Chien University Kaohsiung Campus, 200 University Road, Neimen, Kaohsiung City, Taiwan 84550, Taiwan)

  • HSIN-PEI HSUEH

    (School of Finance, Hubei University of Economics, No. 8 Yangqiaohu Road, Jiang-xia District, Wuhan City, Hubei Province, China 430205, China)

  • CHIEN-MING WANG

    (School of Economics and Trade, Hubei University of Economics, No. 8 Yangqiaohu Road, Jiang-xia District Wuhan City, Hubei Province, China 430205, China)

Abstract

This study applied a multivariate panel Granger causality test to examine the causal relationship between peer-to-peer lending (P2PL) and bank lending (BL) in China’s eight major regions for the period from 2014M01 to 2019M12. The empirical results of this paper support evidence for the P2PL leading hypothesis in regions such as Jiangsu and Hubei while the BL leading hypothesis relationship supports the evidence for regions such as Zhejiang and Shanghai. In addition, there is an interactive causal relationship between P2PL and BL in a region such as Shandong. However, the result of a neutrality hypothesis supports three of these eight major regions (Guangdong, Beijing and Sichuan). The findings of this paper provide important policy implications for China’s eight major regions as well as business sectors in the banking industry for understanding and predicting market conditions.

Suggested Citation

  • Tsung-Pao Wu & Hung-Che Wu & Shu-Bing Liu & Hsin-Pei Hsueh & Chien-Ming Wang, 2020. "Causality Between Peer-To-Peer Lending And Bank Lending In China: Evidence From A Panel Data Approach," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(06), pages 1537-1557, December.
    • Handle: RePEc:wsi:serxxx:v:65:y:2020:i:06:n:s0217590820500332
    DOI: 10.1142/S0217590820500332
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590820500332
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590820500332?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao, Chengguo & Li, Meng & Wang, Jun & Ma, Shujian, 2021. "The mechanism of credit risk contagion among internet P2P lending platforms based on a SEIR model with time-lag," Research in International Business and Finance, Elsevier, vol. 57(C).
    2. Na Song & Isaac Appiah-Otoo, 2022. "The Impact of Fintech on Economic Growth: Evidence from China," Sustainability, MDPI, vol. 14(10), pages 1-17, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:serxxx:v:65:y:2020:i:06:n:s0217590820500332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.