The role of direct financing on regional green development: inhibition or promotion?

Wei Qiu (), Yinghua Li () and Haitao Wu ()
Additional contact information
Wei Qiu: Xinjiang University of Finance and Economics
Yinghua Li: Xinjiang University of Finance and Economics

Economic Change and Restructuring, 2023, vol. 56, issue 5, No 31, 3665-3699

Abstract: Abstract Environmental and social responsibility has become aspect of the new definition of China’s economy, and the direction of green development has been further clarified. As the financial system is the lifeblood of a substantial economy, the Chinese government proposed to increase the proportion of direct financing, match the financial structure with green innovation, and promote green economic growth. Examining the institutional framework in China from 2004 to 2020, this study empirically investigates the effect of direct finance on regional green development applying moderating effect and spatial error models to three time spans. The findings reveal significant spatial differences in China’s direct financing and regional green development, with a positive impact in central and western regions and a significant negative impact in the eastern region. Finally, under the institutional environment, direct financing in the eastern region significantly promotes the regional green development. Our research provides new insights to advance sustainable green economic development in China through action to strengthen the institutional environment.

Keywords: Direct financing; Regional green development; Institutional environment; SEM (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s10644-023-09546-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:ecopln:v:56:y:2023:i:5:d:10.1007_s10644-023-09546-0

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-023-09546-0

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().