Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance

The present study delves into the intricate correlation between fiscal spending and green growth, specifically focusing on the catalyzing effect of green finance. Spanning the timeframe from 2005 to 2021, our investigation encompasses 18 developing and 14 developed countries. Leveraging Bayesian reg...

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Main Authors: Dinh Le Quoc, Oanh Tran Thi Kim, Ha Nguyen Thi Hong
Format: Article
Language:English
Published: Sciendo 2025-09-01
Series:Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice
Subjects:
Online Access:https://doi.org/10.2478/sues-2025-0013
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author Dinh Le Quoc
Oanh Tran Thi Kim
Ha Nguyen Thi Hong
author_facet Dinh Le Quoc
Oanh Tran Thi Kim
Ha Nguyen Thi Hong
author_sort Dinh Le Quoc
collection DOAJ
description The present study delves into the intricate correlation between fiscal spending and green growth, specifically focusing on the catalyzing effect of green finance. Spanning the timeframe from 2005 to 2021, our investigation encompasses 18 developing and 14 developed countries. Leveraging Bayesian regression analysis, our findings uncover a nuanced juxtaposition in the effect of R&D expenditure on green growth across these divergent contexts. In developing nations, R&D spending demonstrates a discouraging negative effect on green growth, supported by a robust probability of 76.74%. Conversely, in developed countries, R&D expenditure manifests a promising positive influence, with a likelihood of 71.33%. However, upon integrating the pivotal role of green finance, a synergistic relationship emerges, underscoring its potential as a catalyst for bolstering green growth in both categories of nations. Grounded in these discerning insights, we delineate tailored implications aimed at fortifying green finance initiatives within each cohort of countries.
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spelling doaj-art-d3be0f6bc44f4a938cf37f8743b4b0ad2025-08-20T03:27:18ZengSciendoStudia Universitatis Vasile Goldis Arad, Seria Stiinte Economice2285-30652025-09-01353699110.2478/sues-2025-0013Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green FinanceDinh Le Quoc0Oanh Tran Thi Kim1Ha Nguyen Thi Hong21Lac Hong University, Dong Nai Province, Vietnam2University of Finance – Marketing – Ho Chi Minh City, Vietnam3Ho Chi Minh City Industry and Trade College, Ho Chi Minh City, VietnamThe present study delves into the intricate correlation between fiscal spending and green growth, specifically focusing on the catalyzing effect of green finance. Spanning the timeframe from 2005 to 2021, our investigation encompasses 18 developing and 14 developed countries. Leveraging Bayesian regression analysis, our findings uncover a nuanced juxtaposition in the effect of R&D expenditure on green growth across these divergent contexts. In developing nations, R&D spending demonstrates a discouraging negative effect on green growth, supported by a robust probability of 76.74%. Conversely, in developed countries, R&D expenditure manifests a promising positive influence, with a likelihood of 71.33%. However, upon integrating the pivotal role of green finance, a synergistic relationship emerges, underscoring its potential as a catalyst for bolstering green growth in both categories of nations. Grounded in these discerning insights, we delineate tailored implications aimed at fortifying green finance initiatives within each cohort of countries.https://doi.org/10.2478/sues-2025-0013fiscal spendinggreen growthgreen financedeveloped countriesdeveloping countriesbayesiane62q01c11q49
spellingShingle Dinh Le Quoc
Oanh Tran Thi Kim
Ha Nguyen Thi Hong
Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice
fiscal spending
green growth
green finance
developed countries
developing countries
bayesian
e62
q01
c11
q49
title Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
title_full Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
title_fullStr Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
title_full_unstemmed Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
title_short Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance
title_sort enhancing green growth exploring the influence of fiscal spending and green finance
topic fiscal spending
green growth
green finance
developed countries
developing countries
bayesian
e62
q01
c11
q49
url https://doi.org/10.2478/sues-2025-0013
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