Sustainable finance and green economic growth: Evidence from the Indonesian banking sector
Green economic growth has emerged as a global priority in pursuing sustainable development. This study examines the role of resource allocation efficiency in supporting green economic growth, as influenced by green financing practices, sustainable finance policies, and green financial products. A q...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Master Program in Economics, Graduate Program of Universitas Jambi
2025-04-01
|
| Series: | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| Subjects: | |
| Online Access: | https://online-journal.unja.ac.id/JES/article/view/39325 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850198593372160000 |
|---|---|
| author | Rita Zulbetti Adzirah Muzaffirah Alfiana Alfiana Perwito Perwito |
| author_facet | Rita Zulbetti Adzirah Muzaffirah Alfiana Alfiana Perwito Perwito |
| author_sort | Rita Zulbetti |
| collection | DOAJ |
| description |
Green economic growth has emerged as a global priority in pursuing sustainable development. This study examines the role of resource allocation efficiency in supporting green economic growth, as influenced by green financing practices, sustainable finance policies, and green financial products. A quantitative research approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study population consisted of 107 financial institutions. A purposive sampling technique was used to select 168 respondents from 84 banks, comprising senior managers, division heads, and executives responsible for implementing sustainable finance policies—averaging two respondents per institution. The results reveal that green financing practices, sustainable finance policies, and green financial products directly and significantly impact green economic growth. Moreover, resource allocation efficiency plays a mediating role in strengthening these relationships. These findings underscore the importance of the banking sector in driving innovation in green financial products, implementing sustainable finance policies, and enhancing resource utilization efficiency. In conclusion, the banking sector holds a strategic position in advancing green economic growth. Future research could extend this framework by examining the role of non-financial sectors or exploring how digital technology transformation facilitates green financing to support sustainable development goals further.
|
| format | Article |
| id | doaj-art-7354e346afaa4a2d84b48b148fc34adf |
| institution | OA Journals |
| issn | 2338-4603 2355-8520 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Master Program in Economics, Graduate Program of Universitas Jambi |
| record_format | Article |
| series | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| spelling | doaj-art-7354e346afaa4a2d84b48b148fc34adf2025-08-20T02:12:50ZengMaster Program in Economics, Graduate Program of Universitas JambiJurnal Perspektif Pembiayaan dan Pembangunan Daerah2338-46032355-85202025-04-0113110.22437/ppd.v13i1.39325Sustainable finance and green economic growth: Evidence from the Indonesian banking sectorRita Zulbetti0Adzirah Muzaffirah1Alfiana Alfiana2Perwito Perwito3Department of Management, Faculty of Economics and Business Universitas Muhammadiyah Bandung, IndonesiaDepartment of Agribusiness, Faculty of Agriculture Universitas Brawijaya Malang, IndonesiaDepartment of Management, Faculty of Economics and Business Universitas Muhammadiyah Bandung, IndonesiaDepartment of Management, Faculty of Economics and Business Universitas Muhammadiyah Bandung, Indonesia Green economic growth has emerged as a global priority in pursuing sustainable development. This study examines the role of resource allocation efficiency in supporting green economic growth, as influenced by green financing practices, sustainable finance policies, and green financial products. A quantitative research approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study population consisted of 107 financial institutions. A purposive sampling technique was used to select 168 respondents from 84 banks, comprising senior managers, division heads, and executives responsible for implementing sustainable finance policies—averaging two respondents per institution. The results reveal that green financing practices, sustainable finance policies, and green financial products directly and significantly impact green economic growth. Moreover, resource allocation efficiency plays a mediating role in strengthening these relationships. These findings underscore the importance of the banking sector in driving innovation in green financial products, implementing sustainable finance policies, and enhancing resource utilization efficiency. In conclusion, the banking sector holds a strategic position in advancing green economic growth. Future research could extend this framework by examining the role of non-financial sectors or exploring how digital technology transformation facilitates green financing to support sustainable development goals further. https://online-journal.unja.ac.id/JES/article/view/39325Green economic growthGreen financing practicesGreen financial productsResource allocation efficiencySustainable finance policies |
| spellingShingle | Rita Zulbetti Adzirah Muzaffirah Alfiana Alfiana Perwito Perwito Sustainable finance and green economic growth: Evidence from the Indonesian banking sector Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Green economic growth Green financing practices Green financial products Resource allocation efficiency Sustainable finance policies |
| title | Sustainable finance and green economic growth: Evidence from the Indonesian banking sector |
| title_full | Sustainable finance and green economic growth: Evidence from the Indonesian banking sector |
| title_fullStr | Sustainable finance and green economic growth: Evidence from the Indonesian banking sector |
| title_full_unstemmed | Sustainable finance and green economic growth: Evidence from the Indonesian banking sector |
| title_short | Sustainable finance and green economic growth: Evidence from the Indonesian banking sector |
| title_sort | sustainable finance and green economic growth evidence from the indonesian banking sector |
| topic | Green economic growth Green financing practices Green financial products Resource allocation efficiency Sustainable finance policies |
| url | https://online-journal.unja.ac.id/JES/article/view/39325 |
| work_keys_str_mv | AT ritazulbetti sustainablefinanceandgreeneconomicgrowthevidencefromtheindonesianbankingsector AT adzirahmuzaffirah sustainablefinanceandgreeneconomicgrowthevidencefromtheindonesianbankingsector AT alfianaalfiana sustainablefinanceandgreeneconomicgrowthevidencefromtheindonesianbankingsector AT perwitoperwito sustainablefinanceandgreeneconomicgrowthevidencefromtheindonesianbankingsector |