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Go for Economic Transformation and Development in China: Financial Development, Higher Education, and Green
Xiaoxiao Zhou1, Xinyue Hu1, Mei Duan2
1School of Finance, Anhui University of Finance and Economics, Bengbu Anhui, PR China.
Financial development and higher education expansion significantly boost green technology innovation in China. Joint efforts are crucial, with higher education acting as a threshold influencing financial development
Area of Science:
- Economics
- Environmental Science
- Innovation Studies
Background:
- Technological innovation is vital for economic transformation.
- Financial development and higher education expansion are key drivers of technological progress.
- Understanding their impact on green technology innovation is crucial for sustainable development.
Purpose of the Study:
- To investigate the influence of financial development and higher education expansion on green technology innovation in China.
- To analyze the direct and indirect effects of these factors.
- To explore the non-linear relationship and threshold effects.
Main Methods:
- Empirical analysis using a linear panel model.
- Application of a nonlinear threshold model.
- Utilizing urban panel data from China (2003-2019).
Main Results:
- Financial development positively correlates with higher education expansion.
- Higher education expansion enhances energy and environment-focused technological progress.
- Financial development directly and indirectly promotes green technology innovation, amplified by higher education.
- A non-linear relationship exists, with higher education acting as a threshold for financial development's impact.
Conclusions:
- Joint financial development and higher education expansion significantly foster green technology innovation.
- Policy interventions should consider the threshold effect of higher education.
- These findings offer insights for promoting green technology innovation-driven economic transformation in China.
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