Transformations  in
Business & Economics

THE MEASUREMENT, IMPACT EFFECT, AND IMPROVEMENT PATH OF GREEN FINANCE DRIVING HQED IN HENAN PROVINCE³
Erli Zhang, Pan Zhang, Jing Huang, Yuqing Xing

ABSTRACT: This research article explores the association between green finance and HQED in Henan Province for the time period from 2010 to 2020. Accordingly, the entropy approach is adopted in this study to develop an evaluation index system for green finance and HQED and to predict the existing status of green finance and HQED in Henan Province. Additionally, this paper empirically analyses the direct effect, Mesomeric effect, spatial spillover effect, and upgrading path of green finance on HQED, using the grey relational model, Mesomeric effect model, and spatial Durbin model. The study findings primarily indicate that the overall level of green finance and HQED is on the rise in the Henan Province; further, there is a substantial driving influence of green finance on the HQED of Henan Province; similarly, the influence of green finance on HQED exerts a spatial spillover impact; finally, green finance utilises GTI to drive HQED. In terms of green finance and HQED, this study puts forward an active path that can be adopted by green finance to lead HQED, which is of vital significance for realising dual carbon goals and HQED.

KEYWORDS:  green finance development (GFD), green technology innovation (GTI), high-quality economic development (HQED), Spatial Durbin model, mediating effect, Henan Province.

JEL classification:  Q54, Q56, E10, O1.

³Acknowledgments:  Acknowledgement: This work was supported by NSFC (12161069), Soft Science Project of Science and Technology Department of Henan (242400410152), The Innovation Studio for Model Workers and Craftsmen Talents of the Education, Science, Culture, Health and Sports of Henan ([2021] No. 21), The Key Cultivation Project for Academic and Technical Leaders of Zhengzhou College of Finance and Economics (ZCFE[2021] No. 20), and Zhengzhou College of Finance and Economics School level scientific research project (ZCKY2022YB-0103).