IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i8p4764-d793981.html
   My bibliography  Save this article

Dynamic Impact of Technology and Finance on Green Technology Innovation Efficiency: Empirical Evidence from China’s Provinces

Author

Listed:
  • Yang Liu

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Yanlin Yang

    (Center for Economic Development Research and Center of Population, Resource & Environmental Economics Research, Wuhan University, Wuhan 430072, China)

  • Shuang Zheng

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Lei Xiao

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Hongjie Gao

    (School of Computer Science, Zhuhai College of Science and Technology, Zhuhai 519040, China)

  • Hechen Lu

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

Abstract

In the new stage of global economic development, we hope to achieve both economic development and environmental improvement through green technology innovation. How to effectively obtain the support of technology and finance to green technology innovation is an issue worth studying. This paper constructed an improved super-SBM-DEA efficiency measurement model and combined it with the window analysis method to measure the green technology innovation efficiency (GTIE) of Chinese provinces from 2006 to 2018. Then, based on the PVAR model, the impulse response function and Monte Carlo simulation were used to study the dynamic impact of various variables of technology and finance on GTIE. Finally, the variance decomposition was used to explore the contribution degree of each variable of technology and finance to improving GTIE. The results revealed the following: (1) the average value of China’s provincial GTIE from 2006 to 2018 was 0.42, which is relatively low and shows a trend of volatility and rising. (2) From the impulse response results, it could be seen that various variables of technology and finance have always had a positive impact on GTIE. However, there are differences in the influence degree, shock effect, and dynamic transmission mechanism. (3) The results of the variance decomposition showed that government financial technology investment had the highest contribution to the improvement of GTIE, followed by bank technology credit, then by enterprise independent R&D investment, and finally venture capital. This paper offered a reference to developing countries with regard to improving their GTIE and studying the role of technology and finance.

Suggested Citation

  • Yang Liu & Yanlin Yang & Shuang Zheng & Lei Xiao & Hongjie Gao & Hechen Lu, 2022. "Dynamic Impact of Technology and Finance on Green Technology Innovation Efficiency: Empirical Evidence from China’s Provinces," IJERPH, MDPI, vol. 19(8), pages 1-17, April.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:8:p:4764-:d:793981
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/8/4764/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/8/4764/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hyytinen, Ari & Toivanen, Otto, 2005. "Do financial constraints hold back innovation and growth?: Evidence on the role of public policy," Research Policy, Elsevier, vol. 34(9), pages 1385-1403, November.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
    4. Zeng, Juying & Škare, Marinko & Lafont, Juan, 2021. "The co-integration identification of green innovation efficiency in Yangtze River Delta region," Journal of Business Research, Elsevier, vol. 134(C), pages 252-262.
    5. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    6. repec:fth:harver:1473 is not listed on IDEAS
    7. Benfratello, Luigi & Schiantarelli, Fabio & Sembenelli, Alessandro, 2008. "Banks and innovation: Microeconometric evidence on Italian firms," Journal of Financial Economics, Elsevier, vol. 90(2), pages 197-217, November.
    8. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    9. Yu Fu & Agus Supriyadi & Tao Wang & Luwei Wang & Giuseppe T. Cirella, 2020. "Effects of Regional Innovation Capability on the Green Technology Efficiency of China’s Manufacturing Industry: Evidence from Listed Companies," Energies, MDPI, vol. 13(20), pages 1-22, October.
    10. Love, Inessa & Zicchino, Lea, 2006. "Financial development and dynamic investment behavior: Evidence from panel VAR," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(2), pages 190-210, May.
    11. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633.
    12. Liyuan Zhang & Xiang Ma & Young-Seok Ock & Lingli Qing, 2022. "Research on Regional Differences and Influencing Factors of Chinese Industrial Green Technology Innovation Efficiency Based on Dagum Gini Coefficient Decomposition," Land, MDPI, vol. 11(1), pages 1-20, January.
    13. Waldemar Glabiszewski & Maciej Zastempowski, 2018. "The Absorptive Capacity of a Finance Company as an Efficiency Factor of Its Pro-technology Innovation Activities," Springer Proceedings in Business and Economics, in: Tadeusz Dudycz & Grażyna Osbert-Pociecha & Bogumiła Brycz (ed.), Efficiency in Business and Economics, pages 57-69, Springer.
    14. Yang Liu & Yanlin Yang & Huihui Li & Kaiyang Zhong, 2022. "Digital Economy Development, Industrial Structure Upgrading and Green Total Factor Productivity: Empirical Evidence from China’s Cities," IJERPH, MDPI, vol. 19(4), pages 1-23, February.
    15. Kaiyang Zhong & Chenglin Li & Qing Wang, 2021. "Evaluation of Bank Innovation Efficiency with Data Envelopment Analysis: From the Perspective of Uncovering the Black Box between Input and Output," Mathematics, MDPI, vol. 9(24), pages 1-18, December.
    16. Chang Li & Mingyang Li & Lu Zhang & Tingyi Li & Hanzhen Ouyang & Sanggyun Na, 2019. "Has the High-Tech Industry along the Belt and Road in China Achieved Green Growth with Technological Innovation Efficiency and Environmental Sustainability?," IJERPH, MDPI, vol. 16(17), pages 1-18, August.
    17. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    18. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen Qian & Caiyao Xu & Fanbin Kong, 2022. "Spatio-Temporal Pattern of Green Agricultural Science and Technology Progress: A Case Study in Yangtze River Delta of China," IJERPH, MDPI, vol. 19(14), pages 1-13, July.
    2. Fei Wang & Zhi Dong & Jichang Dong, 2023. "Assessment of the Drivers and Effects of International Science and Technology Cooperation in Xinjiang in the Context of the Belt and Road Initiative," Sustainability, MDPI, vol. 15(2), pages 1-20, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.
    2. Riccardo Lucchetti & Luca Papi & Alberto Zazzaro, 2001. "Banks’ Inefficiency and Economic Growth: A Micro‐Macro Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(4), pages 400-424, September.
    3. Miyun Zhao & Rui Yang & Yi Li, 2020. "Financial Leverage, Economic Growth and Environmental Degradation: Evidence from 30 Provinces in China," IJERPH, MDPI, vol. 17(3), pages 1-12, January.
    4. Lei, Ming & Yin, Zihan & Yu, Xiaowen & Deng, Shijie, 2017. "Carbon-weighted economic development performance and driving force analysis: Evidence from China," Energy Policy, Elsevier, vol. 111(C), pages 179-192.
    5. Riccardo LUCCHETTI & Luca PAPI & Alberto ZAZZARO, 1999. "Efficienza del sistema bancario e crescita economica nelle regioni italiane," Working Papers 121, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Ouyang, Yaofu & Li, Peng, 2018. "On the nexus of financial development, economic growth, and energy consumption in China: New perspective from a GMM panel VAR approach," Energy Economics, Elsevier, vol. 71(C), pages 238-252.
    7. Lips, Johannes, 2018. "Debt and the Oil Industry - Analysis on the Firm and Production Level," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181504, Verein für Socialpolitik / German Economic Association.
    8. James B. Ang & Jakob B. Madsen, 2012. "Risk capital, private credit, and innovative production," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1608-1639, November.
    9. Elgin, Ceyhun & Kuzubas, Tolga Umut, 2013. "Wage-productivity gap in OECD economies," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-21.
    10. Wahidin, Deni & Akimov, Alexandr & Roca, Eduardo, 2021. "The impact of bond market development on economic growth before and after the global financial crisis: Evidence from developed and developing countries," International Review of Financial Analysis, Elsevier, vol. 77(C).
    11. Qureshi, Fiza & Khan, Habib Hussain & Rehman, Ijaz Ur & Ghafoor, Abdul & Qureshi, Saba, 2019. "Mutual fund flows and investors’ expectations in BRICS economies: Implications for international diversification," Economic Systems, Elsevier, vol. 43(1), pages 130-150.
    12. Mozhgan Asna-ashary & Mohammad Reza Farzanegan & Mehdi Feizi & Saeed Malek Sadati, 2020. "COVID-19 Outbreak and Air Pollution in Iran: A Panel VAR Analysis," MAGKS Papers on Economics 202016, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Yongfu Huang, 2011. "Private investment and financial development in a globalized world," Empirical Economics, Springer, vol. 41(1), pages 43-56, August.
    14. Luca Agnello & Ricardo M. Sousa, 2013. "Fiscal Policy And Asset Prices," Bulletin of Economic Research, Wiley Blackwell, vol. 65(2), pages 154-177, April.
    15. Elgin, Ceyhun & Yucel, Emekcan, 2014. "Determinants of the weight for leisure in preferences," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-26.
    16. W.N.W Azman‐Saini & Peter Smith, 2011. "Finance And Growth: New Evidence On The Role Of Insurance," South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 111-127, June.
    17. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    18. Dreger, Christian & Reimers, Hans-Eggert, 2014. "On the relationship between public and private investment in the euro area," Discussion Papers 344, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    19. Odolinski, Kristofer & Wheat, Phillip, 2016. "Dynamics in rail infrastructure provision: maintenance and renewal costs in Sweden," Working papers in Transport Economics 2016:23, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 11 Dec 2017.
    20. Amrita Chatterjee & Simontini Das, 2019. "Information and Communication Technology Diffusion and Financial Inclusion: An Interstate Analysis for India," Working Papers 2019-178, Madras School of Economics,Chennai,India.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:8:p:4764-:d:793981. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.