scholarly journals Financial Development and Environmental Regulations: The Two Pillars of Green Transformation in China

2020 ◽  
Vol 17 (24) ◽  
pp. 9242
Author(s):  
Cong Li ◽  
Xihua Liu ◽  
Xue Bai ◽  
Muhammad Umar
Keyword(s):  
Economic Development ◽  
Environmental Regulation ◽  
Financial Development ◽  
Technological Progress ◽  
Environmental Regulations ◽  
Theoretical Framework ◽  
Porter Hypothesis ◽  
Chinese Enterprises ◽  
The Relationship ◽  
China’S Economy

Awareness of the influence of environmental regulations and financial development on green technological progress by Chinese enterprises will help to promote the green transformation of China’s economy, thereby comprehensively enhancing the quality and competitiveness of its economic development. This paper constructs a theoretical framework to analyze environmental regulation, financial development, and green technological progress and studies the relationship among these three indicators using 2004–2018 data from Shandong province. The results show that environmental regulations and financial development both play roles in promoting green technological progress, but as environmental regulation becomes stronger, the effects of finance on green technological progress begin to differ across regions. The results partially verify the applicability of the Porter hypothesis in China, providing a reference for all levels of government to formulate scientific and reasonable environmental rules and policies.

scholarly journals Going Green or Going Away? A Spatial Empirical Examination of the Relationship between Environmental Regulations, Biased Technological Progress, and Green Total Factor Productivity

2018 ◽  
Vol 15 (9) ◽  
pp. 1917 ◽  
Author(s):  
Xueli Wang ◽  
Caizhi Sun ◽  
Song Wang ◽  
Zhixiong Zhang ◽  
Wei Zou
Keyword(s):  
Economic Development ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Capital Stock ◽  
Technological Progress ◽  
Environmental Regulations ◽  
Factor Productivity ◽  
Total Capital ◽  
Green Gdp ◽  
The Relationship

China’s economic development has resulted in significant resource consumption and environmental damage. However, technological progress is important for achieving coordinated economic development and environmental protection. Appropriate environmental regulation policies are also important. Although green total factor productivity, environmental regulations, and technological progress vary by location, few studies have been conducted from a spatial perspective. However, spatial spillover effects should be taken into consideration. This study used energy consumption, the sum of physical capital stock and ecological service value as total capital stock, the number of employed people as inputs, sulfur dioxide emissions as undesired outputs, and green GDP as total output to obtain green TFP through a slacks-based measure (SBM) global Malmquist-Luenberger Index. This study also estimated China’s biased technological progress under environmental constraints from 2004 to 2015 based on relevant data (e.g., green GDP, total capital stock, and employment figures). The relationship between green total factor productivity (GTFP), technological progress, and environmental regulation was then examined using a spatial Durbin model. Results were as follows: (1) Based on the complementary elements, although the labor costs gradually increase, the rapid accumulation of capital leads to technological progress that is biased toward capital. However, technological progress in the labor bias can significantly increase GTFP. (2) There is a u-shaped relationship between existing environmental regulations and GTFP. Technological progress can significantly promote GTFP in the surrounding areas through existing environmental regulations. (3) Under spatial weight, the secondary industry coefficient was negative while human capital stock and FDID had positive effects on GTFP. Technological progress is the source of economic growth. It is therefore necessary to promote biased technological development and improve labor-force skills while implementing effective environmental regulation policies.

scholarly journals Environmental Regulation and Financial Performance in China: An Integrated View of the Porter Hypothesis and Institutional Theory

2020 ◽  
Vol 12 (23) ◽  
pp. 10183
Author(s):  
Eunmi Lee
Keyword(s):  
Institutional Theory ◽  
Financial Performance ◽  
Environmental Protection ◽  
Environmental Regulation ◽  
Environmental Regulations ◽  
Command And Control ◽  
Porter Hypothesis ◽  
And Control ◽  
The Relationship ◽  
Positive Impacts

The link between environmental regulations and financial performance has long been studied, but whether command and control environmental regulation or voluntary instruments induce better results is an unsettled question. By drawing on the Porter Hypothesis, this paper examines whether both approaches to environmental protection boost forms of environmental protection regulations that have positive impacts on financial performance. By integrating institutional theory, this study also examines whether ownership structures moderate the relationship between environmental regulation and financial performance. The results from data on 183 firms listed on the Shanghai and Shenzhen Stock Exchanges confirmed that both command and control environmental regulation and voluntary instruments positively affect financial performance. This paper also found that ownership structure strengthens the relationship between command and control environmental regulation and financial performance. The findings enrich the Porter Hypothesis and contribute to environmental research by revealing that properly designed environmental regulations have positive impacts on financial performance. By drawing on institutional theory, this study further contributes to business and management studies by confirming that the specific moderator, China’s state-owned enterprises, is a crucial contributor in achieving robust financial results.

Impacts of Environmental Regulation on Sustainable Economic Growth

2018 ◽  
Vol 9 (9) ◽  
pp. 749-773
Author(s):  
Jonathan Fisher
Keyword(s):  
Economic Growth ◽  
Environmental Regulation ◽  
Technical Change ◽  
Best Practice ◽  
Environmental Regulations ◽  
The European Union ◽  
Porter Hypothesis ◽  
The United Kingdom ◽  
Environment Agency ◽  
Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

scholarly journals The Relationship between Environmental Regulation and Green Total Factor Productivity in China: An Empirical Study Based on the Panel Data of 177 Cities

2020 ◽  
Vol 17 (15) ◽  
pp. 5287 ◽  
Author(s):  
Mingliang Zhao ◽  
Fangyi Liu ◽  
Wei Sun ◽  
Xin Tao
Keyword(s):  
Economic Development ◽  
Panel Data ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Inflection Point ◽  
Factor Productivity ◽  
Positive Effects ◽  
Development Level ◽  
The Mean ◽  
The Relationship

Promoting the coordinated development of industrialization and the environment is a goal pursued by all of the countries of the world. Strengthening environmental regulation (ER) and improving green total factor productivity (GTFP) are important means to achieving this goal. However, the relationship between ER and GTFP has been debated in the academic circles, which reflects the complexity of this issue. This paper empirically tested the relationship between ER and GTFP in China by using panel data and a systematic Gaussian Mixed Model (GMM) of 177 cities at the prefecture level. The research shows that the relationship between ER and GTFP is complex, which is reflected in the differences and nonlinearity between cities with different monitoring levels and different economic development levels. (1) The relationship between ER and GTFP is linear and non-linear in different urban groups. A positive linear relationship was found in the urban group with high economic development level, while a U-shaped nonlinear relationship was found in other urban groups. (2) There are differences in the inflection point value and the variable mean of ER in different urban groups, which have different promoting effects on GTFP. In key monitoring cities and low economic development level cities, the mean value of ER had not passed the inflection point, and ER was negatively correlated with GTFP. The mean values of ER variables in the whole sample, the non-key monitoring and the middle economic development level cities had all passed the inflection point, which gradually promoted the improvement of GTFP. (3) Among the control variables of the different city groups, science and technology input and the financial development level mainly had positive effects on GTFP, while foreign direct investment (FDI) and fixed asset investment variables mainly had negative effects.

scholarly journals Finance and growth nexus: An international analysis across cities

Urban Studies ◽  
2020 ◽  
Vol 58 (1) ◽  
pp. 223-242 ◽  
Author(s):  
Stefanos Ioannou ◽  
Dariusz Wójcik
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Development ◽  
Metropolitan Areas ◽  
Financial Systems ◽  
Financial Centre ◽  
National Economies ◽  
The Relationship ◽  
Stages Of Economic Development

We examine the relationship between finance and economic growth in the metropolitan areas of 75 countries at various stages of economic development in the period 2001–2015. Our analysis demonstrates an inverted-U shaped relationship between finance and growth. This relationship becomes even more significant in the areas of a country outside its largest financial centre, indicating that while these areas can benefit from financial development, they are also the most vulnerable. We show that large financial centres can have an impact on growth across their national economies, but in doing so they complement rather than replace local financial centres. Overall, our results highlight the risks associated with the excesses of financial development and lend evidence to support calls for more decentralised financial systems.

scholarly journals Can Environmental Regulation Flexibility Explain the Porter Hypothesis?—An Empirical Study Based on the Data of China’s Listed Enterprises

2019 ◽  
Vol 11 (8) ◽  
pp. 2214 ◽  
Author(s):  
Guichuan Zhou ◽  
Wendi Liu ◽  
Liming Zhang ◽  
Kaiwen She
Keyword(s):  
Environmental Regulation ◽  
Technological Innovation ◽  
Business Performance ◽  
Negative Impact ◽  
Moderating Effect ◽  
Mediating Effect ◽  
Porter Hypothesis ◽  
Negative Effects ◽  
The Impact ◽  
The Relationship

Previous studies indicate that the Porter hypothesis (PH) generates controversial and inconsistent conclusions on the impact of environmental regulation (ER) on business performance. As a result, based on the data of China’s A-share listed companies from 2016 to 2018, a moderated mediating effect model is established to examine the relationship between ER, technological innovation and business performance, as well as the moderating effect of environmental regulation flexibility (ERF) on the relationship. Results show that technological innovation has a significant mediating effect on the relationship between ER and business performance. Furthermore, ERF has a negative moderating effect on the mediating effect technological innovation exerted. At a certain degree, the flexible ER could weaken technological innovation’s mediating effects on the relationship between ER and business performance, and further could mitigate the negative impact of ER on both technological innovation and business performance. Also, an inflexible ER intensifies its negative effects on technological innovation and business performance, which is to the disadvantage of enterprises becoming the subject of environmental protection consciously and sustainably.

Factors Influencing China’s Outward Foreign Direct Investment

2021 ◽  
Vol 15 (3) ◽  
pp. 299-319
Author(s):  
Hsiu-Ling Wu ◽  
Chien-Hsun Chen ◽  
Yi-Rou Chen
Keyword(s):  
Jel Classification ◽  
Institutional Transformation ◽  
Foreign Exchange Reserves ◽  
Outward Fdi ◽  
Chinese Enterprises ◽  
Factors Influencing ◽  
Gdp Growth Rate ◽  
The Relationship ◽  
Positive Effect ◽  
China’S Economy

The main purpose of this study is to explore factors determining China’s outward FDI (OFDI), with particular emphasis on the unique characteristics of China’s economy during the period of institutional transformation. The empirical results obtained in the present study show that Chinese enterprises tend to invest in countries that have a mature economy. Exports have a significantly positive effect on China’s OFDI, with the relationship between OFDI and exports in China being a complementary one. The relationship between imports and OFDI for China is one of substitution, as Chinese enterprises have often relied upon the importation of key components as a means of acquiring the technology they need. Exchange rates, monopolistic advantage, foreign exchange reserves and the level of technology intensity, all have a significant impact on China’s OFDI, while the GDP growth rate and geographical distance have not had a significant impact. JEL Classification: F200, O160, P450

scholarly journals Evaluating the Relationship Between Financial Sustainability and Socio-Economic Development of Countries

2019 ◽  
Vol 6 (53) ◽  
pp. 25-38
Author(s):  
Viktoriia Kremen ◽  
Inna Shkolnyk ◽  
Andrii Semenog ◽  
Olha Kremen
Keyword(s):  
Developing Countries ◽  
Economic Policy ◽  
Economic Development ◽  
Financial Development ◽  
Financial Market ◽  
Financial Sustainability ◽  
Complex Dynamic ◽  
Socio Economic Development ◽  
The Matrix ◽  
The Relationship

AbstractThis paper examines the mainstream theories of “financial sustainability” and “financial development”. It is suggested understanding “financial development” as the complex dynamic characteristics of the financial sector, which is formed under the influence of financial and economic policy factors and the financial market functioning. The paper provides the methodology of relationship between financial sustainability and socio-economic development of countries evaluation. Based on the matrix method, it is proved that the differences in developed and developing countries occur due to the relationship between financial sustainability and financial development.

scholarly journals IMPACT OF FINANCIAL GROWTH ON THE ECONOMIC DEVELOPMENT OF OMAN

2020 ◽  
Vol 8 (4) ◽  
pp. 277-288
Author(s):  
Muawya Ahmed Hussein ◽  
Md. Shabbir Alam ◽  
Mohammad Noor Alam
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Development ◽  
Unit Root Test ◽  
East Region ◽  
Short Run ◽  
Financial Growth ◽  
New Variables ◽  
Bound Test ◽  
The Relationship

Purpose of the study: This paper aims to empirically test the long and short-run effects of financial development on the economic growth of Oman. Methodology: This paper has applied the Unit root test, ARDL Bound Test for Cointegration, CUSUM, and CUSUMSQ Test for testing of hypotheses. The data used to test the relationship between financial development and economic growth covers the period from 1980 to 2017. Main Findings: The major finding of the study suggested that the financial development variables measured in the research influence the economic growth in Oman.  Applications of the Study: This study can be useful to assess the strength of the empirical link between the financial sector and economic growth in Oman as one of the oil-exporting states of the Middle East Region, where such studies are inadequate. The novelty of the Study: The finding of the study with an addition to the existing literature by incorporating the new variables like employment or poverty in the existing model provides new insight on the financial development of Oman. Limitations and forward of the Study: The study has considered a set of data which in general acts as a catalyst for economic development in a particular country.  Implications of the Study: The outcome of the study suits the nature of the country and its socio-economic conditions. The outcomes of the study will not be suitable for every country and may result in spurious outcomes.

scholarly journals Environmental Regulation, Foreign Direct Investment and China's High-Quality Economic Development

2021 ◽  
Author(s):  
He Wu ◽  
Huachao Yang ◽  
Wei Liang
Keyword(s):  
Economic Development ◽  
Positive Impact ◽  
Local Development ◽  
Environmental Regulations ◽  
Spillover Effects ◽  
Development Stage ◽  
Quality Development ◽  
Technology Spillover ◽  
High Quality ◽  
China’S Economy

Abstract As China's economy shifts from a rapid development stage to a high-quality development stage, it is important to know how different FDI characteristics affect high-quality economic development. Furthermore, under the constraints of environmental regulations, will these impacts change? The dual-fixed spatial Durbin model and panel data of 30 provinces in inland China from 2005 to 2018 were used for analysis. This study finds that (1) under the constraints of environmental regulations, the scale of FDI, export orientation, and technology spillover capacity have a significant positive impact on China's high-quality economic development, but without the constraints of environmental regulations, only the technological spillover capability of FDI has such a significant positive impact. (2) FDI with strong technology spillover capabilities not only promotes local development but also plays a significant role in promoting high-quality economic development in surrounding areas through spillover effects. (3) Compared with secondary industry, tertiary industry plays a stronger role in promoting the high-quality development of China's economy. (4) The areas with high quality economic development are concentrated in the eastern coastal cities. The outdated economic and scientific research and technology in the central and western regions means that they lack the ability to learn advanced technologies from FDI.

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