Search

The importance of dealing with the relationship between foreign direct investment (FDI) and green innovation for sustainable development is being highlighted. However, since FDI can have both positive and negative effects on sustainable development, coupled with regional differences and different development conditions, there is uncertainty about the relationship between FDI and green innovation. Based on the panel data of 30 provinces in China from 2007 to 2018, this paper uses the two-tier stochastic frontier model to decompose the positive and negative effects of FDI on green innovation in different time periods and provinces, and considers the role of regional conditions that lead to regional differences in the green innovation effects of FDI, in order to better provide precise research findings for analyzing the relationship between FDI and green innovation in different provinces in China. First, empirical research shows that the inhibition effect of FDI on green innovation efficiency is smaller than the promotion effect, which makes the combined effect not obviously positive. The average inhibition effect of FDI on green innovation efficiency is 0.0041 and the average promoting effect is 0.0047, which makes the combined effect averaged 0.0006. Second, there are regional differences in the driving effect of FDI on green technology innovation. The western region's FDI has a greater drive effect on the efficiency of green innovation than the central and eastern regions. Third, the promoting effect character of FDI on green innovation efficiency is a "U" type with 70% percentile of the environmental regulation intensity as the inflection point. Due to the imperfection of China's economic structure at this stage, China's relatively developed regions have not yet established the market and industrial structure advantages to fully release the green innovation effect of FDI. Based on the research conclusions, to better promote green innovation efficiency, it is necessary to overcome the disadvantages of the green innovation process dominated by the central government, cultivate and develop green innovation markets, adopt incentive initiatives for foreign enterprises with green technology spillover effects, implement policies to address regional differences, and strengthen the interaction mechanism between FDI and green technology innovation in home countries. • Analyze the bilateral effects of FDI on green innovation efficiency. • FDI not only promotes but also restrains the efficiency of green innovation. • The inhibition effect of FDI is smaller than the promotion effect. • The combined effect of western regions is greater than eastern regions in China. [ABSTRACT FROM AUTHOR]

This paper provides an in-depth understanding of the mechanisms of green finance on green innovation, focusing on their spatial and non-linear relationships. Using panel data of 30 provinces of China during the period of 2009–2017, a green finance index is constructed, and the spatial Durbin model and panel threshold model are used. The results reveal that: (1) Green finance and green innovation had significant positive autocorrelation, and the development of green finance in provinces of central and western China were still in the lower-level range. (2) The coefficients of the direct effect and indirect effect of green finance on green innovation were significantly positive, which indicated that green finance was conducive to enhancing green innovation in local and adjacent provinces during the research period. (3) Double threshold effects of green finance on green innovation were observed, which demonstrated that the driving effect of green finance was decreased with the raising of intensity of environmental regulation. The implication of these results is that government should make full use of the radiation and trickle-down functions of green finance and green innovation to narrow regional gaps in sustainable development while maintaining a moderate intensity of environmental regulation. • A green finance index of 30 provinces of China during the period of 2009 to 2017 was constructed on the basis of green credit, green securities, green insurance, and green investment. • The heterogeneity of region and time for green finance were analyzed employing the spatial exploratory analysis, which manifested that the spatial evolution of green finance in China presents a gradient decreasing pattern from east to west. • The impact of green finance on green innovation was explored by the spatial Durbin model, which proved that the direct effect and the spatial spillover effect were significantly positive. • Moderate intensity of environmental regulation helps green finance promote green innovation and this value should not exceed a maximum of 0.935. [ABSTRACT FROM AUTHOR]

Although green growth has become the economic development strategy of many countries in the world, and studies have analyzed the influencing factors of green growth from multiple angles, there are few literatures devoted to the impact of fintech and green finance on green growth. From the perspective of fintech development, this paper tries to construct a comprehensive index to evaluate the green growth of regional economy based on the in-depth analysis of the influence mechanism of green finance on green growth. At the same time, China's provincial panel data from 2011 to 2018 are selected to test the impact of fintech innovation and green finance on green growth, and its mechanism. It turns out that fintech and green finance significantly promotes green economic growth. At the same time, the impact of fintech and green finance on green growth has obvious regional heterogeneity, that is, the impact in eastern China is significantly stronger than that in central and western China. Further research shows that fintech innovation mainly promotes green economic growth through green credit and green investment. Therefore, fintech innovation can promote green economic growth by improving the development level of green finance, which has great reference significance for most countries. [ABSTRACT FROM AUTHOR]