Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment

In light of global initiatives aimed at promoting sustainability and low-carbon growth, this research investigates how green finance affects regional technological innovation in China, specifically highlighting the mediating effect of R&D investment. Utilizing panel data from 30 provinces in Chi...

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Main Authors: Ading Li, Adul Supanut, Jianxu Liu
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:International Journal of Financial Studies
Subjects:
Online Access:https://www.mdpi.com/2227-7072/13/2/78
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author Ading Li
Adul Supanut
Jianxu Liu
author_facet Ading Li
Adul Supanut
Jianxu Liu
author_sort Ading Li
collection DOAJ
description In light of global initiatives aimed at promoting sustainability and low-carbon growth, this research investigates how green finance affects regional technological innovation in China, specifically highlighting the mediating effect of R&D investment. Utilizing panel data from 30 provinces in China from 2008 to 2021, we apply fixed-effects and mediation models to explore these relationships. The results indicate a strong positive link between green finance and regional technological innovation, with R&D investment acting as a partial mediator. Furthermore, the capabilities for regional innovation and entrepreneurship enhance the influence of green finance on R&D investment. However, in areas with greater innovation and entrepreneurship capabilities, the additional effect of R&D investment tends to decrease. Based on these results, the study proposes targeted policy recommendations, including enhancing green finance policies, improving financial institution services, promoting enterprise-led R&D activities, and fostering regional collaboration to achieve balanced innovation development. These insights provide both theoretical and practical significance for leveraging green finance to advance sustainable innovation.
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institution Kabale University
issn 2227-7072
language English
publishDate 2025-05-01
publisher MDPI AG
record_format Article
series International Journal of Financial Studies
spelling doaj-art-ea6c51fed9024401947d5846fdec2ae82025-08-20T03:27:10ZengMDPI AGInternational Journal of Financial Studies2227-70722025-05-011327810.3390/ijfs13020078Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D InvestmentAding Li0Adul Supanut1Jianxu Liu2Faculty of Economics, Srinakharinwirot University, Bangkok 10110, ThailandFaculty of Economics, Srinakharinwirot University, Bangkok 10110, ThailandSchool of Economics, Shandong University of Finance and Economics, Jinan 250000, ChinaIn light of global initiatives aimed at promoting sustainability and low-carbon growth, this research investigates how green finance affects regional technological innovation in China, specifically highlighting the mediating effect of R&D investment. Utilizing panel data from 30 provinces in China from 2008 to 2021, we apply fixed-effects and mediation models to explore these relationships. The results indicate a strong positive link between green finance and regional technological innovation, with R&D investment acting as a partial mediator. Furthermore, the capabilities for regional innovation and entrepreneurship enhance the influence of green finance on R&D investment. However, in areas with greater innovation and entrepreneurship capabilities, the additional effect of R&D investment tends to decrease. Based on these results, the study proposes targeted policy recommendations, including enhancing green finance policies, improving financial institution services, promoting enterprise-led R&D activities, and fostering regional collaboration to achieve balanced innovation development. These insights provide both theoretical and practical significance for leveraging green finance to advance sustainable innovation.https://www.mdpi.com/2227-7072/13/2/78green financeregional technological innovationfixed effectsmediating effectsR&D investment
spellingShingle Ading Li
Adul Supanut
Jianxu Liu
Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment
International Journal of Financial Studies
green finance
regional technological innovation
fixed effects
mediating effects
R&D investment
title Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment
title_full Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment
title_fullStr Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment
title_full_unstemmed Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment
title_short Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment
title_sort green finance and regional technological innovation in china the mediating role of r d investment
topic green finance
regional technological innovation
fixed effects
mediating effects
R&D investment
url https://www.mdpi.com/2227-7072/13/2/78
work_keys_str_mv AT adingli greenfinanceandregionaltechnologicalinnovationinchinathemediatingroleofrdinvestment
AT adulsupanut greenfinanceandregionaltechnologicalinnovationinchinathemediatingroleofrdinvestment
AT jianxuliu greenfinanceandregionaltechnologicalinnovationinchinathemediatingroleofrdinvestment