IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v27y2025i2d10.1007_s10668-023-04085-0.html
   My bibliography  Save this article

Does financial development promote high-quality economic development goals of China? Novel findings and implications from technological innovation perspective

Author

Listed:
  • Zhengyuan Liu

    (Assumption University of Thailand)

  • Yi Shi

    (Zhejiang University)

  • Hongxi Chen

    (Ulaanbaatar Erdem University
    Quanzhou Yixing Electrical Engineering Construction Co., Ltd., Nan’an Branch)

  • Guochao Lin

    (Fuzhou University of International Studies and Trade)

  • Huangxin Chen

    (Macao Polytechnic University)

Abstract

China is dedicated to advancing high-quality economic development (HED) in alignment with the United Nations’ Sustainable Development Goals (SDGs), focusing on ecological civilization and social welfare. Financial support is crucial for sustainable and rapid economic growth. This study utilizes panel data from 30 provinces and municipalities in China to examine the impact of financial development on HED, particularly in relation to scientific and technological innovation (STI). The study utilizes a threshold regression model. The findings assert that development of finance significantly contributes to HED of China. Among the categorical indicators of development of finance, efficiency of financial development yields the most pronounced impact, followed by structure of financial development, while financial development scale exerts the least influence. Augmenting the caliber of STI magnifies the contribution of financial development and its categorical indicators to HED. However, as the STI level improves further, financial development's overall role in promoting HED diminishes. In order to realize high-quality development, enhancing the efficiency of financial development is crucial, optimize its structure, and promote effective collaboration between financial development and STI. The government should leverage the active role of finance in eco-environmental governance and technological innovation.

Suggested Citation

  • Zhengyuan Liu & Yi Shi & Hongxi Chen & Guochao Lin & Huangxin Chen, 2025. "Does financial development promote high-quality economic development goals of China? Novel findings and implications from technological innovation perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 4469-4488, February.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:2:d:10.1007_s10668-023-04085-0
    DOI: 10.1007/s10668-023-04085-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-04085-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-04085-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chen, Huangxin & Shi, Yi & Zhao, Xin, 2022. "Investment in renewable energy resources, sustainable financial inclusion and energy efficiency: A case of US economy," Resources Policy, Elsevier, vol. 77(C).
    2. Liyuan Zhang & Xiang Ma & Young-Seok Ock & Lingli Qing, 2022. "Research on Regional Differences and Influencing Factors of Chinese Industrial Green Technology Innovation Efficiency Based on Dagum Gini Coefficient Decomposition," Land, MDPI, vol. 11(1), pages 1-20, January.
    3. Shahid Iqbal & Abdul Qayyum Khan & Muhammad Yar Khan & Lamya Al-Aali, 2021. "The Dynamics of Financial Development, Government Quality, and Economic Growth in Different Groups of Economies," Sustainability, MDPI, vol. 13(14), pages 1-14, July.
    4. Xiang Yan & Yongchun Huang, 2021. "Is there a nonlinear economic threshold effect of financial development on the efficiency of sci‐tech innovation? An empirical test from the Yangtze River Economic Belt," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1387-1409, September.
    5. Rousseau, P. L. & Wachtel, P., 2000. "Equity markets and growth: Cross-country evidence on timing and outcomes, 1980-1995," Journal of Banking & Finance, Elsevier, vol. 24(12), pages 1933-1957, December.
    6. Carlin, Wendy & Mayer, Colin, 2003. "Finance, investment, and growth," Journal of Financial Economics, Elsevier, vol. 69(1), pages 191-226, July.
    7. QiTong Yu & WenYu Dong, 2018. "The Interactive Relationship between Sci-Tech Innovation and Economic Growth: An Empirical Study Based on China Macroeconomic Data," Applied Economics and Finance, Redfame publishing, vol. 5(3), pages 82-88, May.
    8. Renzhong Liu & Jingxiu Du & Liuyan Wei, 2022. "Financial Development, Heterogeneous Technological Progress, and Carbon Emissions: An Empirical Analysis Based on Provincial Panel Data in China," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    9. Wang, Zhe & Chen, Huangxin & Teng, Yin-Pei, 2023. "Role of greener energies, high tech-industries and financial expansion for ecological footprints: Implications from sustainable development perspective," Renewable Energy, Elsevier, vol. 202(C), pages 1424-1435.
    10. Yingying Zhou & Zhuoqing Fang & Nan Li & Xueyan Wu & Yuehan Du & Zonghan Liu, 2019. "How Does Financial Development Affect Reductions in Carbon Emissions in High-Energy Industries?—A Perspective on Technological Progress," IJERPH, MDPI, vol. 16(17), pages 1-25, August.
    11. Xu, Li & Wang, Xiuli & Guo, Wen, 2022. "Does renewable energy adaptation, globalization, and financial development matter for environmental quality and economic progress? Evidence from panel of big five (B5) economies," Renewable Energy, Elsevier, vol. 192(C), pages 631-640.
    12. Wang, Zhe & Teng, Yin-Pei & Wu, Shuzhao & Liu, Yuxiang & Liu, Xianchang, 2023. "Geopolitical risk, financial system and natural resources extraction: Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    13. Jianyu Han & Min He & Honglin Xie & Tao Ding, 2022. "The Impact of Scientific and Technological Innovation on High-Quality Economic Development in the Yangtze River Delta Region," Sustainability, MDPI, vol. 14(21), pages 1-19, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Zhiwei & Huang, Yongjun, 2023. "Natural resources and trade-adjusted carbon emissions in the BRICS: The role of clean energy," Resources Policy, Elsevier, vol. 86(PA).
    2. Fang Song & Xuerong Xu, 2023. "How Operation Scale Improve the Production Technical Efficiency of Grape Growers? An Empirical Evidence of Novel Panel Methods for China’s Survey Data," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    3. Chen, Liang & Guo, Yirong, 2023. "The drivers of sustainable development: Natural resources extraction and education for low-middle- and high-income countries," Resources Policy, Elsevier, vol. 86(PB).
    4. Li, Xuelin & Yang, Lin, 2023. "Natural resources, remittances and carbon emissions: A Dutch Disease perspective with remittances for South Asia," Resources Policy, Elsevier, vol. 85(PB).
    5. Tang, Juan & Jiang, Yanyan, 2024. "Natural resources-environment dilemma: The context of foreign direct investment and international trade," Resources Policy, Elsevier, vol. 89(C).
    6. Wang, Zhe & Teng, Yin-Pei & Wu, Shuzhao & Liu, Yuxiang & Liu, Xianchang, 2023. "Geopolitical risk, financial system and natural resources extraction: Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    7. Chen, Ming & Chen, Junying, 2023. "Natural resources extraction in emerging economies: Does it promote sustainable development or crowd-out real sector?," Resources Policy, Elsevier, vol. 83(C).
    8. Joel Peress, 2014. "Learning from Stock Prices and Economic Growth," The Review of Financial Studies, Society for Financial Studies, vol. 27(10), pages 2998-3059.
    9. Jong, Eelke de & Semenov, Radislav, 2002. "Cross-country differences in stock market development : a cultural view," Research Report 02E40, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    10. Lin, Renzao & Wang, Zhe & Gao, Chunjiao, 2023. "Re-examining resources taxes and sustainable financial expansion: An empirical evidence of novel panel methods for China's provincial data," Resources Policy, Elsevier, vol. 80(C).
    11. Wang, Zhe & Chen, Huangxin & Teng, Yin-Pei, 2023. "Role of greener energies, high tech-industries and financial expansion for ecological footprints: Implications from sustainable development perspective," Renewable Energy, Elsevier, vol. 202(C), pages 1424-1435.
    12. Víctor Alexánder Díaz Espana, 2014. "Crédito privado, crédito bancario y producto interno bruto: evidencia para una muestra suramericana," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 32(73), pages 104-126, July.
    13. repec:dgr:rugsom:02e40 is not listed on IDEAS
    14. Anton Gerunov, 2014. "Connection between Financial Sector and Economic Growth at High Levels of Financial Development," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 39-68.
    15. Wu, Anbing & Chen, Junying & Zhang, Yanyan, 2023. "Natural resources and energy resources prices an answer to energy insecurity? The role of mineral, forest, coal resources and financial development," Resources Policy, Elsevier, vol. 87(PA).
    16. Castro, Fernanda & Kalatzis, Aquiles E.G. & Martins-Filho, Carlos, 2015. "Financing in an emerging economy: Does financial development or financial structure matter?," Emerging Markets Review, Elsevier, vol. 23(C), pages 96-123.
    17. Zheng, Chengting & Wu, Shufang & Teng, Yin-Pei & Wu, Shuzhao & Wang, Zhe, 2023. "Natural resources, tourism resources and economic growth: A new direction to natural resources perspective and investment," Resources Policy, Elsevier, vol. 86(PB).
    18. Liu, Lili, 2023. "Natural resources extraction and global COP26 target: An overview of USA economy," Resources Policy, Elsevier, vol. 82(C).
    19. Teng, Yin-Pei, 2023. "Natural resources extraction and sustainable development: Linear and non-linear resources curse hypothesis perspective for high income countries," Resources Policy, Elsevier, vol. 83(C).
    20. Zhang, Jialin & Shi, Shaodong, 2023. "Extraction of natural resources and geopolitical risk revisited: A novel perspective of research and development with financial development," Resources Policy, Elsevier, vol. 85(PA).
    21. Bai, Rongjun & Liu, Yan, 2023. "Natural resources as a source of financing energy poverty reduction? Resources extraction perspective," Resources Policy, Elsevier, vol. 82(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:27:y:2025:i:2:d:10.1007_s10668-023-04085-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.