Green Investment, Technological Progress, and Green Industrial Development: Implications for Sustainable Development

Mingwen Chen, RongJia Chen (), Shiyong Zheng and Biqing Li
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Mingwen Chen: Economics and Management School, Wuhan University, Wuhan 430072, China
RongJia Chen: Economics and Management School, Wuhan University, Wuhan 430072, China
Shiyong Zheng: Economics and Management School, Wuhan University, Wuhan 430072, China
Biqing Li: School of Business, Guilin University of Electronic Technology, Guilin 541004, China

Sustainability, 2023, vol. 15, issue 4, 1-12

Abstract: Environmental reformation of old-fashioned sectors and the establishment of new pro-ecological businesses via green investment are the main driving forces behind the revolution in the Chinese industrial sector. Green investment aids in the growth of environmentally friendly industries. Hence, the primary objective of the analysis is to investigate the impact of green investment and technological progress on green industrial development. The results of the unit root tests encourage us to apply the ARDL model. The short and long-run estimates attached to R&D expenditures are positively significant, confirming that increasing R&D expenditures help improve the industrial structure. Similarly, the short and long-run estimates attached to green finance investment are positively significant, signifying that green investment benefits the industrial structure. Empirical findings show that technology significantly aggravates industrial structure development in only the long run. Thus, for green industrial development in China, there is a need to increase green investment and technological development up to top-level design.

Keywords: green investment; technology; green industrial development; sustainable development; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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