Juniorprofessorin Xiang Li, Ph.D.

Juniorprofessorin Xiang Li, Ph.D.
Aktuelle Position

seit 1/19

Leiterin der Forschungsgruppe Internationale Integration der Finanzmärkte, Wirtschaftswachstum und Finanzstabilität

Leibniz-Institut für Wirtschaftsforschung Halle (IWH)

seit 10/18


Martin-Luther-Universität Halle-Wittenberg

seit 10/18

Mitglied der Abteilung Makroökonomik

Leibniz-Institut für Wirtschaftsforschung Halle (IWH)


  • internationale Finanzen
  • chinesische Wirtschaft
  • Makroökonomik offener Volkswirtschaften

Xiang Li ist seit Oktober 2018 Juniorprofessorin an der Martin-Luther-Universität Halle-Wittenberg und wissenschaftliche Mitarbeiterin der Abteilung Makroökonomik am IWH. Ihre Forschungsinteressen liegen im Bereich internationale Finanzen.

Xiang Li studierte und promovierte an der Peking University.

Ihr Kontakt

Juniorprofessorin Xiang Li, Ph.D.
Juniorprofessorin Xiang Li, Ph.D.
- Abteilung Makroökonomik
Nachricht senden +49 345 7753-805 Persönliche Seite



Financial Technologies and the Effectiveness of Monetary Policy Transmission

Iftekhar Hasan Boreum Kwak Xiang Li

in: European Economic Review, January 2024


This study investigates whether and how financial technologies (FinTech) influence the effectiveness of monetary policy transmission. We use an interacted panel vector autoregression model to explore how the effects of monetary policy shocks change with regional-level FinTech adoption. Results indicate that FinTech adoption generally mitigates the transmission of monetary policy to real GDP, consumer prices, bank loans, and housing prices, with the most significant impact observed in the weakened transmission to bank loan growth. The relaxed financial constraints, regulatory arbitrage, and intensified competition are the possible mechanisms underlying the mitigated transmission.

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Household Indebtedness, Financial Frictions and the Transmission of Monetary Policy to Consumption: Evidence from China

Michael Funke Xiang Li Doudou Zhong

in: Emerging Markets Review, June 2023


This paper studies the impact of household indebtedness on the transmission of monetary policy to consumption using the Chinese household-level survey data. We employ a panel smooth transition regression model to investigate the non-linear role of indebtedness. We find that housing-related indebtedness weakens the monetary policy transmission, and this effect is non-linear as there is a much larger counteraction of consumption in response to monetary policy shocks when household indebtedness increases from a low level rather than from a high level. Moreover, the weakened monetary policy transmission from indebtedness is stronger in urban households than in rural households. This can be explained by the investment good characteristic of real estate in China.

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Surges and Instability: The Maturity Shortening Channel

Xiang Li Dan Su

in: Journal of International Economics, November 2022


Capital inflow surges destabilize the economy through a maturity shortening mechanism. The underlying reason is that firms have incentives to redeem their debt on demand to accommodate the potential liquidity needs of global investors, which makes international borrowing endogenously fragile. Based on a theoretical model and empirical evidence at both the firm and macro levels, our main findings are twofold. First, a significant association exists between surges and shortened corporate debt maturity, especially for firms with foreign bank relationships and higher redeployability. Second, the probability of a crisis following surges with a flattened yield curve is significantly higher than that following surges without one. Our study suggests that debt maturity is the key to understand the financial instability consequences of capital inflow bonanzas.

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Global Political Ties and the Global Financial Cycle

Gene Ambrocio Iftekhar Hasan Xiang Li

in: IWH Discussion Papers, Nr. 23, 2023


We study the implications of forging stronger political ties with the US on the sensitivities of stock returns around the world to a global common factor – the global financial cycle. Using voting patterns at the United Nations as a measure of political ties with the US along with various measures of the global financial cycle, we document evidence indicating that stronger political ties with the US amplify the sensitivities of stock returns in developing countries to the global financial cycle. We explore several channels and find that a deepening of financial linkages along with a reduction in information asymmetries and an amplification of sentiment are potentially important factors behind this result.

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BigTech Credit, Small Business, and Monetary Policy Transmission: Theory and Evidence

Yiping Huang Xiang Li Han Qiu Dan Su Changhua Yu

in: IWH Discussion Papers, Nr. 18, 2022


This paper provides both theoretical and empirical analyses of the differences between BigTech lenders and traditional banks in response to monetary policy changes. Our model integrates Knightian uncertainty into portfolio selection and posits that BigTech lenders possess a diminishing informational advantage with increasing firm size, resulting in reduced ambiguity when lending to smaller firms. The model suggests that the key distinction between BigTech lenders and traditional banks in response to shifts in funding costs, triggered by monetary policy changes, is more evident at the extensive margin rather than the intensive margin, particularly during periods of easing monetary policy. Using a micro-level dataset of small business loans from both types of lenders, we provide empirical support for our theoretical propositions. Our results show that BigTech lenders are more responsive in establishing new lending relationships in an easing monetary policy environment, while the differences in loan amounts are not statistically significant. We also discuss other loan terms and the implications of regulatory policies.

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The Role of State-owned Banks in Crises: Evidence from German Banks During COVID-19

Xiang Li

in: IWH Discussion Papers, Nr. 6, 2022


By adopting a difference-in-differences specification combined with propensity score matching, I provide evidence using the microdata of German banks that stateowned savings banks have lent less than credit cooperatives during the COVID-19 crisis. In particular, the weaker lending effects of state-owned banks are pronounced for long-term and nonrevolving loans but insignificant for short-term and revolving loans. Moreover, the negative impact of government ownership is larger for borrowers who are more exposed to the COVID-19 shock and in regions where the ruling parties are longer in office and more positioned on the right side of the political spectrum.

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