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Digital economy development, industrial structure development, and green finance

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  • Chen, Chunxiao
  • Xie, Xin

Abstract

Based on panel data of Chinese prefecture-level cities from 2011 to 2023, this paper constructs a three-dimensional analytical framework of "digital technology - industrial structure - environmental regulation" to systematically explore the impact mechanism of the digital economy on the development of green finance. The study finds that the digital economy has a significant positive promoting effect on green finance through technological innovation and optimized resource allocation, and this effect remains robust after being tested by the instrumental variable method. Industrial structure upgrading serves as a core transmission channel. Environmental regulation plays a positive moderating role, creating synergistic effects with the digital economy. There are notable regional heterogeneities. In the eastern region, the digital economy and green finance are deeply integrated, while in the central and western regions, the effects have not yet emerged due to the lag in digital infrastructure and insufficient product innovation.

Suggested Citation

  • Chen, Chunxiao & Xie, Xin, 2025. "Digital economy development, industrial structure development, and green finance," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014072
    DOI: 10.1016/j.frl.2025.108152
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    References listed on IDEAS

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