Interaction Effects of Green Finance and Digital Platforms on China’s Economic Growth

He Li, Nurhafiza Abdul Kader Malim (), Xiaojun Xie and Xuyang Du
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He Li: School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia
Nurhafiza Abdul Kader Malim: School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia
Xiaojun Xie: School of Mathematical Sciences, Universiti Sains Malaysia (USM), Penang 11800, Malaysia
Xuyang Du: School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia

Sustainability, 2025, vol. 17, issue 18, 1-16

Abstract: This study examines the interaction effects of green finance and digital platforms on China’s economic growth, employing panel data from 30 provinces spanning the period 2013–2023. Green finance is measured using green bonds and green credit, while digital platforms are proxied by electronic payment and e-commerce penetration. Previous empirical findings indicate that both green finance and digital platforms significantly contribute to economic growth. A 1% increase in the interaction term between green finance and digital platforms, based on fixed effects models with robust standard errors, results in a 0.0204% increase in GDP, supporting the hypothesis of a positive interaction. Control variables including money supply, fiscal expenditure, inflation rate, fixed asset investment, and industrial structure, are included to isolate the net effects of green finance and digital platforms on GDP growth, reinforcing the study’s econometric robustness. This study contributes novel evidence on how the integration of green finance and digital infrastructure fosters sustainable and inclusive economic development.

Keywords: green finance; digital platforms; economic growth; interaction; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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