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Digital Financial Inclusion and Inclusive Green Growth: Evidence from China’s Green Growth Initiatives

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  • Ruixin Peng

    (The Institute for Sustainable Development, Macau University of Science and Technology, Taipa 999078, Macao)

  • Bing Zeng

    (School of Economics, Anhui University of Finance and Economics, Bengbu 233030, China)

Abstract

The inclusive and environmentally sustainable transformation of economic growth is a crucial indicator for the high-quality development of urban areas. In this perspective, this paper explores the connection between digital inclusive finance and inclusive green growth in 270 Chinese cities from 2011 to 2021. The study used a panel dataset, individual fixed-effects models, and multiple mediation models to analyze the results. The study findings reveal that digital inclusive finance effectively stimulates regional inclusive green growth and enhances positive transmission mainly by improving green technology innovation, increasing entrepreneurship levels, and promoting industrial structure upgrading, of which environmental-friendly technology innovation channels constitute the main contributor. The effects of regions, administrative hierarchy of cities, financial marketization, policy support, and environmental regulation are analyzed in heterogeneity analysis. To ensure the robustness of baseline results, this study utilized two-stage least squares (2-SLS) and difference in difference (DID) approaches. Moreover, this study offers valuable insights into the environmental implications of digital financial inclusion in emerging economies.

Suggested Citation

  • Ruixin Peng & Bing Zeng, 2024. "Digital Financial Inclusion and Inclusive Green Growth: Evidence from China’s Green Growth Initiatives," IJFS, MDPI, vol. 13(1), pages 1-24, December.
    • Handle: RePEc:gam:jijfss:v:13:y:2024:i:1:p:2-:d:1557489
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    References listed on IDEAS

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    3. Philippe Aghion & Peter Howitt & David Mayer-Foulkes, 2005. "The Effect of Financial Development on Convergence: Theory and Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(1), pages 173-222.
    4. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    5. Chunyan He & Anjie Li & Ding Li & Junlin Yu, 2022. "Does Digital Inclusive Finance Mitigate the Negative Effect of Climate Variation on Rural Residents’ Income Growth in China?," IJERPH, MDPI, vol. 19(14), pages 1-19, July.
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