Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model

This research examines the spatial effect of financial development and technological innovation on green growth in China using the Spatial Durbin Model (SDM) based on the 30 provinces’ panel data from 2011 to 2018. The green growth index is measured by using Entropy Weight Method (EWM). The results...

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Main Authors: Cao, Jianhong, Siong, Hook Law, Abdul Samad, Abdul Rahim, W Mohamad, Wan Norhidayah, Wang, Jianlong, Yang, Xiaodong
Format: Article
Published: Elsevier 2022
Online Access:http://psasir.upm.edu.my/id/eprint/101107/
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author Cao, Jianhong
Siong, Hook Law
Abdul Samad, Abdul Rahim
W Mohamad, Wan Norhidayah
Wang, Jianlong
Yang, Xiaodong
author_facet Cao, Jianhong
Siong, Hook Law
Abdul Samad, Abdul Rahim
W Mohamad, Wan Norhidayah
Wang, Jianlong
Yang, Xiaodong
author_sort Cao, Jianhong
building UPM Institutional Repository
collection Online Access
description This research examines the spatial effect of financial development and technological innovation on green growth in China using the Spatial Durbin Model (SDM) based on the 30 provinces’ panel data from 2011 to 2018. The green growth index is measured by using Entropy Weight Method (EWM). The results show that: First, the development scale of financial institutions (lnFDS) in the local province has a significantly negative effect on local green growth (GG), but has a significantly positive effect on green growth (GG) in the surrounding provinces. Second, the scale of the stock market in the local province (lnSTO) has a significantly positive effect on green growth both in the local and surrounding provinces. Third, technological innovation (lnTI) in the local province has a significantly positive effect on local green growth, while it has an insignificantly positive effect on green growth in the surrounding provinces. Fourth, the interaction between financial development and technological innovation increases the negative effect on green growth, which indicates that the integration efficiency of financial development and technological innovation is not high. Lack of institutional innovation and insufficient financial support for technological innovation in the financial sector may be one of the important reasons.
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institution Universiti Putra Malaysia
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last_indexed 2025-11-15T13:33:49Z
publishDate 2022
publisher Elsevier
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spelling upm-1011072023-05-23T07:40:28Z http://psasir.upm.edu.my/id/eprint/101107/ Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model Cao, Jianhong Siong, Hook Law Abdul Samad, Abdul Rahim W Mohamad, Wan Norhidayah Wang, Jianlong Yang, Xiaodong This research examines the spatial effect of financial development and technological innovation on green growth in China using the Spatial Durbin Model (SDM) based on the 30 provinces’ panel data from 2011 to 2018. The green growth index is measured by using Entropy Weight Method (EWM). The results show that: First, the development scale of financial institutions (lnFDS) in the local province has a significantly negative effect on local green growth (GG), but has a significantly positive effect on green growth (GG) in the surrounding provinces. Second, the scale of the stock market in the local province (lnSTO) has a significantly positive effect on green growth both in the local and surrounding provinces. Third, technological innovation (lnTI) in the local province has a significantly positive effect on local green growth, while it has an insignificantly positive effect on green growth in the surrounding provinces. Fourth, the interaction between financial development and technological innovation increases the negative effect on green growth, which indicates that the integration efficiency of financial development and technological innovation is not high. Lack of institutional innovation and insufficient financial support for technological innovation in the financial sector may be one of the important reasons. Elsevier 2022-09 Article PeerReviewed Cao, Jianhong and Siong, Hook Law and Abdul Samad, Abdul Rahim and W Mohamad, Wan Norhidayah and Wang, Jianlong and Yang, Xiaodong (2022) Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model. Journal of Cleaner Production, 365. art. no. 132865. pp. 1-15. ISSN 0959-6526 https://www.sciencedirect.com/science/article/pii/S0959652622024581 10.1016/j.jclepro.2022.132865
spellingShingle Cao, Jianhong
Siong, Hook Law
Abdul Samad, Abdul Rahim
W Mohamad, Wan Norhidayah
Wang, Jianlong
Yang, Xiaodong
Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model
title Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model
title_full Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model
title_fullStr Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model
title_full_unstemmed Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model
title_short Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model
title_sort effect of financial development and technological innovation on green growth—analysis based on spatial durbin model
url http://psasir.upm.edu.my/id/eprint/101107/
http://psasir.upm.edu.my/id/eprint/101107/
http://psasir.upm.edu.my/id/eprint/101107/