The impact of the development of green finance on the industrial structure in China

Abstract

As a new financial means to boost sustainable development, green finance exerts functions in the promotion of industrial restructuring in China. Based on the calculation of the green finance index and the industrial structure index, this study tries to prove the relationship between green finance and industrial structure in China. Following the investigation on the functions of China's green financial development on the industrial structure from the nationwide and diverse regions. This research highlights: (1) From the perspectives of nations, the green finance growth of has a intimate link with the industrial structure development, and the enhancement of green finance boost the modulation of industrial structure. Meanwhile, the industrial structure in a lagging period takes effect on the current industrial structure. The improved level of technology RD, increased level of government expenditure, and increased fixed asset investment can notably improve the China’s industrial structure optimization. (2) From the perspectives of regions, the green finance growth coefficient of every region is positive, indicating the positive influence of green finance on the industrial structure’s optimization and renewing. The industrial structure in a lagging period is more obvious in the east, but the coefficient is positive in all regions. Similar to the national situation, the increased level of technology RD and government expenditure, together with the elevated fixed asset investment can greatly advance the optimization and renewing of industrial structure. At last, giving suggestions from government, financial institutions, as well as enterprises based on the conclusions.