Research on the Impact of Green Finance on Industrial Structure Transformation and Upgrading in Zhejiang Province—The mediation effect of Government Fiscal Expenditure
Year: 2025
Type: article
Abstract: This study empirically examines how green finance drives industrial upgrading in Zhejiang Province (2010-2023) through panel data analysis of 11 prefecture-level cities. Results demonstrate that a one-unit increase in the Green Finance Index (GFI) elevates the Industrial Structure Upgrading Index by 1.429 units, confirming its direct catalytic effect. Crucially, government fiscal expenditure acts as a significant partial mediator, amplifying green finance's impact via low-carbon subsidies and regulatory reinforcement. The findings validate a dual-pathway mechanism where green finance concurrently reshapes industrial structures directly through capital reallocation and indirectly through fiscal policy synergy. Practical implications highlight targeted fiscal incentives and cross-regional governance frameworks to accelerate sustainable transformation.
Authors: Li Qiuyi, Ha Youngho
Institution: Sehan University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4413436730