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Green growth path dependence momentum under the prism of COP26: the role of financial deepening, ICT development, and export diversification

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Abstract

Financial deepening is important in resource allocation for more productive enterprises, leading to sustainable green growth. Moreover, rapid development in the digital economy and export diversification significantly affect green growth. From this perspective, our study explores the impact of financial deepening, ICT development, and export diversification on green growth in China’s economies from 1996 to 2021. The study explores the linkage between financial deepening, ICT development, export diversification, and green growth by employing the nonlinear autoregressive distributed lag (NARDL) approach. The results obtained in the long run are as follows: positive shock in financial deepening brings positive change in green growth, whereas negative shock in financial deepening reduces green growth. In the long run, positive shock in ICT enhances green growth, but negative shock in ICT does not impact green growth. Moreover, positive shock in export diversification brings positive change in green growth, whereas negative shock in export diversification reports an insignificant impact on green growth. Based on findings, it is suggested that financial deepening, ICT development, and export diversification are conducive to sustainable green growth.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. School of Economics, Capital University of Economics and Business, Bei**g, 100070, China

    Rui Hu & Baodan Liu

  2. Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan

    Sidra Sohail

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  1. Rui Hu
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  2. Baodan Liu
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  3. Sidra Sohail
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Contributions

Rui Hu: idea, software, methodology, and writing—original draft preparation. Baodan Liu: reviewing and editing, and methodology. Sidra Sohail: conceptualization, writing—original draft preparation, and reviewing and editing.

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Correspondence to Sidra Sohail.

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Hu, R., Liu, B. & Sohail, S. Green growth path dependence momentum under the prism of COP26: the role of financial deepening, ICT development, and export diversification. Environ Sci Pollut Res 31, 20073–20083 (2024). https://doi.org/10.1007/s11356-024-32277-2

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