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Green finance, natural resources, and economic growth: Theory analysis and empirical research

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  • Ouyang, Haiqin
  • Guan, Chao
  • Yu, Bo

Abstract

This study constructs a Hamilton optimization theory model and conducts empirical research using Chinese provincial panel data to analyze the relationship between green finance and economic growth. Our findings show that the green finance policy can help improve the scale and quality of economic growth, but at the expense of a reduced growth rate. Furthermore, green finance policy can guide capital flow to high-tech industries, which can promote the optimization and upgrading of the industrial structure. Innovation capital acts as a mediator in the transmission path of the “green finance and economic growth” mechanisms. Finally, the development of green finance helps weaken the dependence of economic growth on natural resources. Thus, green finance policy should be continuously improved and implemented to guide the green transformation of the financial sector and services to the real economy.

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  • Ouyang, Haiqin & Guan, Chao & Yu, Bo, 2023. "Green finance, natural resources, and economic growth: Theory analysis and empirical research," Resources Policy, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:jrpoli:v:83:y:2023:i:c:s030142072300315x
    DOI: 10.1016/j.resourpol.2023.103604
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    3. Guoyong Wu & Jianwei Cheng & Fan Yang & Gaozhe Chen, 2024. "Can green finance policy promote ecosystem product value realization? Evidence from a quasi-natural experiment in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    4. Lingui Qin & Yan Zhang & Yige Wang & Xinning Pan & Zhe Xu, 2024. "Research on the Impact of Digital Green Finance on Agricultural Green Total Factor Productivity: Evidence from China," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    5. Zhang, Can & Zhang, Liangyu & Liu, Liyan & Du, Chaofei, 2024. "The study of the relationship between green finance and resource efficiency in east asian economies," Resources Policy, Elsevier, vol. 89(C).
    6. Zhao, Tong, 2023. "The impact of financial inclusion and natural resource endowment on China's carbon emissions in the post-covid-19 period," Resources Policy, Elsevier, vol. 86(PB).
    7. Shaolong Zeng & Qinyi Fu & Fazli Haleem & Yang Shen & Jiedong Zhang, 2023. "Carbon-Reduction, Green Finance, and High-Quality Economic Development: A Case of China," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    8. Zhang, Wei & Ke, Jinjun & Ding, Yougang & Chen, Sicen, 2024. "Greening through finance: Green finance policies and firms' green investment," Energy Economics, Elsevier, vol. 131(C).
    9. Ioan-Iulian Norocel & Eugen-Marian Vierescu, 2024. "The Relationship between Environmental, Social and Governance Factors, Economic Growth, and Banking Activity," JRFM, MDPI, vol. 17(7), pages 1-12, July.
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