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How does the modernization of agriculture promote manufacturing firms' green transition?

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  • Gong, Binbin
  • Yang, Ning
  • Liu, Wenming

Abstract

This study empirically investigates the relationship between agricultural modernization and the green transition in manufacturing, utilizing panel data from 2011 to 2023. The results indicate that agricultural modernization catalyzes manufacturing enterprises` green transition. The analysis delineates two essential transmission mechanisms: fostering ecological awareness throughout supply chains and systemic enhancements in total factor productivity. These findings indicate that agricultural modernization enhances environmental governance standards in manufacturing and transforms production paradigms toward circularity and low-carbon operations. These conclusions highlight the need for integrated agro-industrial methods in attaining interconnected economic and environmental goals, offering empirical support for coordinated transition policies in developing nations.

Suggested Citation

  • Gong, Binbin & Yang, Ning & Liu, Wenming, 2025. "How does the modernization of agriculture promote manufacturing firms' green transition?," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010682
    DOI: 10.1016/j.frl.2025.107810
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    References listed on IDEAS

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