The Development of Green Finance and the Rising Status of China’s Manufacturing Value Chain

Chun Lin, Xin Zhang, Zhaoyang Gao () and Yingjie Sun ()
Additional contact information
Chun Lin: School of Finance and Trade, Faculty of Economics, Liaoning University, Shenyang 110036, China
Xin Zhang: School of Finance and Trade, Faculty of Economics, Liaoning University, Shenyang 110036, China
Zhaoyang Gao: Faculty of Social Science & Public Policy, King’s College London, London WC2B 2BG, UK
Yingjie Sun: School of Finance and Trade, Faculty of Economics, Liaoning University, Shenyang 110036, China

Sustainability, 2023, vol. 15, issue 8, 1-25

Abstract: Green finance has gradually become an imperative engine for the high-quality development of the manufacturing industry in the new era. Using 30 provincial panel data sets of China from 2011 to 2020, this paper explores whether green finance will effectively impact the rise of China’s manufacturing value chain using green finance as the breakthrough point. The results show that: (1) The implementation of green finance policy has a promoting effect on the rise of the manufacturing value chain. (2) It has significant regional heterogeneity characteristics in the process of green finance that influence the manufacturing value chain. In the transformation and upgrading of the manufacturing industry, the role of green finance in regions with developed economic bases is superior to those in comparatively backward areas. (3) Innovation and technological development are significant factors in the development of the manufacturing industry, and the intensity of innovative development inputs as well as the labour factor of highly skilled workers have a moderating role in the process of green finance for climbing up the value chain status of manufacturing. Based on the empirical evidence, policy implications are suggested.

Keywords: green finance; manufacturing; value chain status; heterogeneity test; regulatory effect (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 (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/8/6395/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/8/6395/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:8:p:6395-:d:1118791

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().