RESEARCH ON THE INFLUENCE MECHANISM OF GREEN FINANCE AND REGIONAL ECONOMIC DEVELOPMENT BASED ON THE PERSPECTIVE OF TECHNOLOGICAL INNOVATION

Abstract

Amidst global endeavors to foster sustainable and high-quality economic development, this research examines the influence of green finance on regional economic expansion from the perspective of technological innovation. This research employs panel data collected from 30 provinces in China spanning the years 2008 to 2021., developing a green finance development index and applying fixed-effects, mediation, and moderated mediation models to scrutinize the underlying mechanisms. Findings reveal that green finance substantially advances regional high-quality economic growth, with regional innovation capacity. Moreover, environmental pollution control’s intensity improves the beneficial effects of green finance by intensifying the mediating role of regional innovation capacity. However, green finance’s effect displays regional heterogeneity, with more developed areas reaping greater benefits due to their superior financial infrastructure and innovation ecosystems. This research proposes specific suggestions for policy improvements, including the improvement of green finance policies, the expansion of green financial tools, the increase in research and development funding, and the implementation of tailored financial support strategies for specific regions. These contributions enhance the theoretical comprehension of green finance's function in economic development and provide actionable guidance for policymakers.

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