The impact and mechanism of fintech on green total factor productivity

Yanyan Yao; Dandan Hu; Cunyi Yang; Yong Tan; Yanyan Yao; Dandan Hu; Cunyi Yang; Yong Tan

doi:10.3934/GF.2021011

Green Finance

2021, Volume 3, Issue 2: 198-221. doi: 10.3934/GF.2021011

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Research article

The impact and mechanism of fintech on green total factor productivity

1.
Accounting Office, Guangzhou Municipal Finance Bureau, Guangzhou 510623, China
2.
School of Economics and Statistics, Guangzhou University, 510006, Guangzhou, P.R. China
3.
Department of Accountancy, Finance and Economics, Huddersfield Business School, University of Huddersfield, Queensgate, HD1 3DH, UK

Received: 26 May 2021 Accepted: 06 June 2021 Published: 08 June 2021
JEL Codes: E44, E47, G28, P34

The key to balancing economic transformation and improving quality development is financial supporting green development. The relationship between financial technology (fintech) and green development has gradually emerged recently. Based on the data of 35 major cities in China from 2015 to 2019, the fintech development index and green total factor productivity (GTFP) are obtained by adopting web crawler technology and Bootstrap-SBM-GML model respectively; further, the impact of urban fintech level on GTFP is also revealed by taking the financial support policy index (FSP) as the instrumental variable. The empirical research shows the following results. First, the level of fintech and financial support policy indicators show a steady upward trend in the study period; whereas the tendency of GTFP is not obvious. Second, the urban fintech level has a significant promoting effect on GTFP through FE, MM-QR and 2SLS models. Specifically, the promoting effect mainly comes from the promotion of technological change (TC) of the GTFP decomposition index; the promoting effect will be greater in the lower cities of green development level. Third, industrial structure upgrading (UIS) and technological innovation (TI) play an intermediary role in the green development effect of fintech. Four, the green development effect of fintech is heterogeneous. Specifically, the green development effect of fintech on GTFP is larger in the central and western regions and low-level cities; whereas it is smaller in the eastern part regions and high-level cities.
- financial technology (fintech),
- green total factor productivity (GTFP),
- financial support policy,
- instrumental variable,
- mediating role,
- heterogeneity
Citation: Yanyan Yao, Dandan Hu, Cunyi Yang, Yong Tan. The impact and mechanism of fintech on green total factor productivity[J]. Green Finance, 2021, 3(2): 198-221. doi: 10.3934/GF.2021011

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Abstract

The key to balancing economic transformation and improving quality development is financial supporting green development. The relationship between financial technology (fintech) and green development has gradually emerged recently. Based on the data of 35 major cities in China from 2015 to 2019, the fintech development index and green total factor productivity (GTFP) are obtained by adopting web crawler technology and Bootstrap-SBM-GML model respectively; further, the impact of urban fintech level on GTFP is also revealed by taking the financial support policy index (FSP) as the instrumental variable. The empirical research shows the following results. First, the level of fintech and financial support policy indicators show a steady upward trend in the study period; whereas the tendency of GTFP is not obvious. Second, the urban fintech level has a significant promoting effect on GTFP through FE, MM-QR and 2SLS models. Specifically, the promoting effect mainly comes from the promotion of technological change (TC) of the GTFP decomposition index; the promoting effect will be greater in the lower cities of green development level. Third, industrial structure upgrading (UIS) and technological innovation (TI) play an intermediary role in the green development effect of fintech. Four, the green development effect of fintech is heterogeneous. Specifically, the green development effect of fintech on GTFP is larger in the central and western regions and low-level cities; whereas it is smaller in the eastern part regions and high-level cities.

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