Digital finance, financing constraints, and green technological innovation: A spatial analysis

This study investigates the role of financing constraints in mediating the influence of digital finance on green technological innovations by using the spatial Durbin model. Based on the panel data of 273 Chinese cities from 2011 to 2020, the empirical results demonstrate that local and neighboring...

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Published inGlobal finance journal Vol. 61; p. 100988
Main Authors Li, Bo, Liu, Zhenya, Jia, Xuemei, Ma, Fengping
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.07.2024
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Abstract This study investigates the role of financing constraints in mediating the influence of digital finance on green technological innovations by using the spatial Durbin model. Based on the panel data of 273 Chinese cities from 2011 to 2020, the empirical results demonstrate that local and neighboring financing constraints mediate more than 50% of the direct impact of local digital finance on the quantity and quality of green innovation. Moreover, these financing constraints completely mediate the indirect impact of neighbors' digitalization levels, one of the three indicators of digital finance. This underscores the importance of addressing financing constraints and fostering regional cooperation to enhance the efficacy of digital finance in advancing green technology. •The role of financing constraints in digital finance's effect on green innovation.•Financing constraints mediate the impact of digital finance on green technology.•Financing constraints mediate the neighbors' digitalization levels' indirect impact.
AbstractList This study investigates the role of financing constraints in mediating the influence of digital finance on green technological innovations by using the spatial Durbin model. Based on the panel data of 273 Chinese cities from 2011 to 2020, the empirical results demonstrate that local and neighboring financing constraints mediate more than 50% of the direct impact of local digital finance on the quantity and quality of green innovation. Moreover, these financing constraints completely mediate the indirect impact of neighbors' digitalization levels, one of the three indicators of digital finance. This underscores the importance of addressing financing constraints and fostering regional cooperation to enhance the efficacy of digital finance in advancing green technology. •The role of financing constraints in digital finance's effect on green innovation.•Financing constraints mediate the impact of digital finance on green technology.•Financing constraints mediate the neighbors' digitalization levels' indirect impact.
ArticleNumber 100988
Author Jia, Xuemei
Liu, Zhenya
Li, Bo
Ma, Fengping
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Keywords Digital finance
C23
Financing constraints
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Green technological innovation
Spatial Durbin model
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Snippet This study investigates the role of financing constraints in mediating the influence of digital finance on green technological innovations by using the spatial...
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SubjectTerms Digital finance
Financing constraints
Green technological innovation
Spatial Durbin model
Title Digital finance, financing constraints, and green technological innovation: A spatial analysis
URI https://dx.doi.org/10.1016/j.gfj.2024.100988
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