Financial agglomeration boosts green economic growth in China, study finds.
Financial agglomeration in China positively impacts green economic growth by increasing productivity and promoting energy conservation. A study analyzed data from 30 regions between 2008-2017 using a model that measures efficiency in green economic growth. Results show that a 1% increase in financial agglomeration leads to a 0.1837% rise in green total factor productivity and a 0.0964% increase in green economic growth in neighboring areas. This improvement is mainly due to technological advancements that support coordinated economic growth and energy efficiency.