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Does Green Finance Promote Export Sophistication? An Analysis of the Moderating Effect Based on Green Taxes

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  • Kai Zhang

    (Shenzhen Audencia FinTech Institute, Shenzhen University, Shenzhen 518060, China
    WeBank Institute of Fintech, Shenzhen University, Shenzhen 518060, China)

  • Dongyuan Liu

    (China Center for Special Economic Zone Research, Shenzhen University, Shenzhen 518061, China)

Abstract

This study examines the impact of green finance on export technological complexity by using panel data from 30 provincial-level administrative units in China from 2011 to 2019. The study finds that green finance significantly promotes export sophistication; with the promotion effect varying by the geographical location and institutional environment, the mechanism test shows that upgrading industrial structure and enhancing technological innovation are the two transmission paths for green finance to enhance export sophistication. Additionally, the study finds that green tax moderates the impact of green finance on export sophistication. The threshold effect test reveals that industrial structures, as well as their upgrades and technological innovation, have a single threshold. However, they need to reach a certain threshold value before they can play their role to the fullest, while green tax has a marginal increasing effect. The study provides a new perspective on the relationship between green finance and export sophistication, and the empirical evidence for current green finance policies promotes the development of the real economy.

Suggested Citation

  • Kai Zhang & Dongyuan Liu, 2023. "Does Green Finance Promote Export Sophistication? An Analysis of the Moderating Effect Based on Green Taxes," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8303-:d:1151064
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    1. Ma, Dan & Zhu, Yanjin & Yang, Yuhan, 2024. "How Green finance affects export production quality: Fresh evidence from China," Energy Economics, Elsevier, vol. 131(C).

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