Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading

Green finance is expected to decrease environmental pollution and the depletion of fossil energy, ultimately contributing to green economic growth (GEG). The panel data from 31 Chinese provinces between 2010 and 2020 is used to investigate the role of green finance on GEG and the mediating effect of...

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Main Authors: Deng, Wei, Kharuddin, Saira, Mohd Ashhari, Zariyawati, Dapo Olohunlana, Somod
Format: Article
Language:English
Published: Human Resources Management Academic Research Society (HRMARS) 2024
Online Access:http://psasir.upm.edu.my/id/eprint/119523/
http://psasir.upm.edu.my/id/eprint/119523/1/119523.pdf
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author Deng, Wei
Kharuddin, Saira
Mohd Ashhari, Zariyawati
Dapo Olohunlana, Somod
author_facet Deng, Wei
Kharuddin, Saira
Mohd Ashhari, Zariyawati
Dapo Olohunlana, Somod
author_sort Deng, Wei
building UPM Institutional Repository
collection Online Access
description Green finance is expected to decrease environmental pollution and the depletion of fossil energy, ultimately contributing to green economic growth (GEG). The panel data from 31 Chinese provinces between 2010 and 2020 is used to investigate the role of green finance on GEG and the mediating effect of industrial structure upgrading (ISU). This study newly creates the GEG index with 17 indicators based on the entropy-weighted TOPSIS method and performs empirical analysis using fixed effect and panel quantile regression models. The twostage least squares (2SLS) and system generalized method of moments (GMM) are also adopted to conduct the endogeneity test. It is found that the information presented by the GEG index accurately reflects the state of affairs in China's provinces, indicating that this index is valid. Green finance enhances GEG, and this boost increases as the level of GEG rises. The findings also imply that ISU positively mediates the impact of green finance on GEG, accounting for 28.4% of the total impact. The COVID-19 pandemic overall shows a promotion of GEG, although it hampers economic growth.
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spelling upm-1195232025-08-27T06:45:09Z http://psasir.upm.edu.my/id/eprint/119523/ Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading Deng, Wei Kharuddin, Saira Mohd Ashhari, Zariyawati Dapo Olohunlana, Somod Green finance is expected to decrease environmental pollution and the depletion of fossil energy, ultimately contributing to green economic growth (GEG). The panel data from 31 Chinese provinces between 2010 and 2020 is used to investigate the role of green finance on GEG and the mediating effect of industrial structure upgrading (ISU). This study newly creates the GEG index with 17 indicators based on the entropy-weighted TOPSIS method and performs empirical analysis using fixed effect and panel quantile regression models. The twostage least squares (2SLS) and system generalized method of moments (GMM) are also adopted to conduct the endogeneity test. It is found that the information presented by the GEG index accurately reflects the state of affairs in China's provinces, indicating that this index is valid. Green finance enhances GEG, and this boost increases as the level of GEG rises. The findings also imply that ISU positively mediates the impact of green finance on GEG, accounting for 28.4% of the total impact. The COVID-19 pandemic overall shows a promotion of GEG, although it hampers economic growth. Human Resources Management Academic Research Society (HRMARS) 2024-10-02 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/119523/1/119523.pdf Deng, Wei and Kharuddin, Saira and Mohd Ashhari, Zariyawati and Dapo Olohunlana, Somod (2024) Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading. International Journal of Academic Research in Economics and Management Sciences, 13 (4). pp. 17-39. ISSN 2226-3624 https://hrmars.com/index.php/IJAREMS/article/view/22852/Transitioning-to-Green-Economic-Growth-in-China-Green-Finance-and-the-Mediator-of-Industrial-Structure-Upgrading 10.6007/ijarems/v13-i4/22852
spellingShingle Deng, Wei
Kharuddin, Saira
Mohd Ashhari, Zariyawati
Dapo Olohunlana, Somod
Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading
title Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading
title_full Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading
title_fullStr Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading
title_full_unstemmed Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading
title_short Transitioning to green economic growth in China: green finance and the mediator of industrial structure upgrading
title_sort transitioning to green economic growth in china: green finance and the mediator of industrial structure upgrading
url http://psasir.upm.edu.my/id/eprint/119523/
http://psasir.upm.edu.my/id/eprint/119523/
http://psasir.upm.edu.my/id/eprint/119523/
http://psasir.upm.edu.my/id/eprint/119523/1/119523.pdf