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Institutional synergy for green growth: Decoding GTFP's complex mediation between business environment and
Rudong Nie1, Yue Long2, Qinwen Deng2
1Institute of Chengdu-Chongqing Economic Zone Development, Chongqing Technology and Business University, Chongqing, China; Chongqing Vocational Institute of Engineering, Chongqing, China.
Abstract:
This study investigates how the institutional business environment influences economic growth through its mediation effects on green total factor productivity (GTFP). Drawing on data from 290 Chinese cities, a hybrid methodological framework integrating qualitative comparative analysis (QCA) and regression techniques is employed. The results reveal that: (1) The business environment enhances GTFP through multiple equifinal pathways. The synergy between public service provision and innovation ecosystems consistently promotes GTFP improvement, and some institutional components, such as governance and cultural mechanisms, exhibit substitutability. (2) A favorable business environment significantly promotes economic growth, with GTFP acting as a complex mediator. Cities with higher GTFP levels tend to achieve stronger economic outcomes. These findings underscore the multidimensional relationships among institutional settings, green productivity, and economic development. The study concludes by outlining adaptive policy recommendations to strengthen institutional configurations, thereby supporting long-term urban sustainability.
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