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Digital finance, financing constraints, and green technological innovation: A spatial analysis

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  • Li, Bo
  • Liu, Zhenya
  • Jia, Xuemei
  • Ma, Fengping

Abstract

This study investigates the role of financing constraints in mediating the influence of digital finance on green technological innovations by using the spatial Durbin model. Based on the panel data of 273 Chinese cities from 2011 to 2020, the empirical results demonstrate that local and neighboring financing constraints mediate more than 50% of the direct impact of local digital finance on the quantity and quality of green innovation. Moreover, these financing constraints completely mediate the indirect impact of neighbors' digitalization levels, one of the three indicators of digital finance. This underscores the importance of addressing financing constraints and fostering regional cooperation to enhance the efficacy of digital finance in advancing green technology.

Suggested Citation

  • Li, Bo & Liu, Zhenya & Jia, Xuemei & Ma, Fengping, 2024. "Digital finance, financing constraints, and green technological innovation: A spatial analysis," Global Finance Journal, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:glofin:v:61:y:2024:i:c:s1044028324000607
    DOI: 10.1016/j.gfj.2024.100988
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    1. Lu He & Lunzheng Zhou & Jiaguo Qi & Yan Song & Minghui Jiang, 2024. "The Role of Digital Finance Embedded in Green Agricultural Development: Evidence from Agribusiness Enterprises in China," Land, MDPI, vol. 13(10), pages 1-20, October.

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    More about this item

    Keywords

    Financing constraints; Digital finance; Green technological innovation; Spatial Durbin model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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