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Green investment, financial development, digitalization and economic sustainability in Vietnam: Evidence from a quantile-on-quantile regression and wavelet coherence

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  • Hung, Ngo Thai

Abstract

This study analyzes how economic sustainability in Vietnam could be promoted by realizing opportunities represented by green investment, digitalization, and financial development. The relationship between digitalization, green investment, financial development, and sustainable development has yet to be thoroughly investigated. In addition, no research has been conducted in Vietnam on the relationship between these indicators to the best of our knowledge. By doing so, we adopt a novel three-stage methodology comprising quantile-on-quantile regression developed by Sim and Zhou (2015), Granger causality in quantiles proposed by Troster (2018), and wavelet analysis. The findings demonstrate a strong positive effect of digitalization, green investment, and financial development on economic sustainability in Vietnam across most quantiles, indicating that investment in green resources, technology innovation, and financial development supports the country's transition to sustainable development. Overall, the empirical findings show that digitalization, green investment, and financial development can all play a significant role in significantly increasing the sustainability of Vietnam's current high economic growth trajectories. The findings could create a roadmap for developing countries to use technology innovation, green investment, and financial development in productive sectors to accomplish sustainable development goals.

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  • Hung, Ngo Thai, 2023. "Green investment, financial development, digitalization and economic sustainability in Vietnam: Evidence from a quantile-on-quantile regression and wavelet coherence," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    • Handle: RePEc:eee:tefoso:v:186:y:2023:i:pb:s0040162522007065
    DOI: 10.1016/j.techfore.2022.122185
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    More about this item

    Keywords

    Digitalization; Financial development; Green investment; Vietnam; Quantile regression;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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