Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance

Dinh Le Quoc (), Oanh Tran Thi Kim () and Ha Nguyen Thi Hong ()
Additional contact information
Dinh Le Quoc: Lac Hong University, Dong Nai Province, Vietnam
Oanh Tran Thi Kim: University of Finance – Marketing – Ho Chi Minh City, Vietnam
Ha Nguyen Thi Hong: Ho Chi Minh City Industry and Trade College, Ho Chi Minh City, Vietnam

Studia Universitatis „Vasile Goldis” Arad – Economics Series, 2025, vol. 35, issue 3, 69-91

Abstract: The present study delves into the intricate correlation between fiscal spending and green growth, specifically focusing on the catalyzing effect of green finance. Spanning the timeframe from 2005 to 2021, our investigation encompasses 18 developing and 14 developed countries. Leveraging Bayesian regression analysis, our findings uncover a nuanced juxtaposition in the effect of R&D expenditure on green growth across these divergent contexts. In developing nations, R&D spending demonstrates a discouraging negative effect on green growth, supported by a robust probability of 76.74%. Conversely, in developed countries, R&D expenditure manifests a promising positive influence, with a likelihood of 71.33%. However, upon integrating the pivotal role of green finance, a synergistic relationship emerges, underscoring its potential as a catalyst for bolstering green growth in both categories of nations. Grounded in these discerning insights, we delineate tailored implications aimed at fortifying green finance initiatives within each cohort of countries.

Keywords: Fiscal Spending; Green Growth; Green Finance; Developed Countries; Developing Countries; Bayesian (search for similar items in EconPapers)
JEL-codes: C11 E62 Q01 Q49 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/sues-2025-0013 (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:vrs:suvges:v:35:y:2025:i:3:p:69-91:n:1003

DOI: 10.2478/sues-2025-0013

Access Statistics for this article

Studia Universitatis „Vasile Goldis” Arad – Economics Series is currently edited by Florin Cornel Dumiter

More articles in Studia Universitatis „Vasile Goldis” Arad – Economics Series from Sciendo
Bibliographic data for series maintained by Peter Golla ().