Research On The Impact Of Financial Development On Green Total Factor Productivity

The total amount of China’s economy has been continuously rising,but resource shortages,environmental pollution and ecological degradation have been aggravating,which have become the main obstacles to the sustainable economic development.Total Factor Productivity(TFP)growth is an important source of economic growth.Considering the unexpected output of resource input and environmental pollution,the Green Total Factor Productivity(GTFP)is the important guarantee for the transformation of economic growth mode and the realization of green development.Green development is the thinking,direction and focus of national development in the 13th Five-Year Plan and even longer term and mainly depends on the GTFP growth,which need effective support from financial system.Due to the imbalance and inconsistency in economic development and financial development in different regions,financial development does not necessarily lead to the GTFP growth,or even hinder it.Therefore,this paper analyses the relationship between financial development and the GTFP,and excavates the financial power of the GTFP growth,thus promoting green development.Based on the theoretical analysis of the relationship between financial development and the GTFP,this paper selects 12 indicators from four aspects:capital support,resource allocation,risk management and enterprise supervision to construct financial development index system.With the data of 30 provinces in China from 2006 to 2016,this paper uses the global principal component analysis and GML index based on SBM-DDF model to calculate the financial development level and the GTFP respectively,and further decomposes the GTFP into green technology efficiency(GEC)and green technology progress(GTC).Then,this paper empirically analyses the impact of financial development on the GTFP by using fixed effect model estimation method and system GMM method.The research results show that:(1)China’s GTFP is on the rise as a whole,and the progress of the GTC is the main driving force for its growth,while the GEC has fallen back.At the same time,the GTFP has obvious regional heterogeneity,showing the spatial pattern of gradient decline in the eastern,central and western region.(2)At the national level,financial development promotes the GTFP growth,mainly in three aspects:capital support,risk management and enterprise supervision,while resource allocation is not conducive to the GTFP growth.(3)At the regional level,financial development in the eastern region can promote the GTFP growth,mainly in three aspects:capital support,risk management and enterprise supervision,while resource allocation is not conducive to the GTFP growth.Financial development in the central and western regions inhibits the GTFP growth,mainly in resource allocation,risk management and enterprise supervision,while capital support is conducive to the GTFP growth.Based on the results of theoretical and empirical analysis,this paper puts forward the following policy recommendations:Expand the financing channels of enterprises and promote the development of green industry;Strengthen the supervision of the financial system and improve the efficiency of the use of funds;Optimize the allocation of financial resources and improve the efficiency of green output;Construct green financial system and promote the green transformation of society;Increase investment in R&D and support technological innovation activities;Implement different financial policies and coordinate regional financial development.