Does financial development promote high-quality economic development goals of China? Novel findings and implications from technological innovation perspective

Zhengyuan Liu (), Yi Shi (), Hongxi Chen (), Guochao Lin () and Huangxin Chen ()
Additional contact information
Zhengyuan Liu: Assumption University of Thailand
Yi Shi: Zhejiang University
Hongxi Chen: Ulaanbaatar Erdem University
Guochao Lin: Fuzhou University of International Studies and Trade
Huangxin Chen: Macao Polytechnic University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 2, No 71, 4469-4488

Abstract: Abstract China is dedicated to advancing high-quality economic development (HED) in alignment with the United Nations’ Sustainable Development Goals (SDGs), focusing on ecological civilization and social welfare. Financial support is crucial for sustainable and rapid economic growth. This study utilizes panel data from 30 provinces and municipalities in China to examine the impact of financial development on HED, particularly in relation to scientific and technological innovation (STI). The study utilizes a threshold regression model. The findings assert that development of finance significantly contributes to HED of China. Among the categorical indicators of development of finance, efficiency of financial development yields the most pronounced impact, followed by structure of financial development, while financial development scale exerts the least influence. Augmenting the caliber of STI magnifies the contribution of financial development and its categorical indicators to HED. However, as the STI level improves further, financial development's overall role in promoting HED diminishes. In order to realize high-quality development, enhancing the efficiency of financial development is crucial, optimize its structure, and promote effective collaboration between financial development and STI. The government should leverage the active role of finance in eco-environmental governance and technological innovation.

Keywords: Financial development; High-quality economic development; Threshold regression model; Technological innovation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-023-04085-0 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:spr:endesu:v:27:y:2025:i:2:d:10.1007_s10668-023-04085-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-023-04085-0

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().