Open government data and personal default: Evidence from China

Abstract

This paper employs a quasi-natural experiment and a double-difference model to explore the impact of Open Government Data (OGD) on personal default in China. Our findings demonstrate that OGD significantly reduces instances of personal default, highlighting its positive role in enhancing the social credit system. Mechanism analysis indicates that this reduction occurs primarily through the alleviation of entrepreneurial failure risk, improved risk management capabilities among banks, and the optimization of regional commercial credit environments. Heterogeneity analysis reveals that the influence of OGD is particularly pronounced in regions characterized by higher risk tolerance, greater economic policy uncertainty, enhanced information accessibility, and more mobile traditional factors. Additionally, the effect is more significant among young and middle-aged individuals. These findings contribute empirical insights that may inform the establishment of social credit systems particularly in developing countries.