Unlocking Growth: The Role of Green Finance, Innovation, and Economic Drivers

Abstract

The research explores the relationship among green finance, innovation, and economic growth in relation to financial development. It utilizes OLS and MMQR methods to assess the impact of green finance, the number of patents, economic growth, gross fixed capital formation, and public expenditure on research and development on the progress of financial development. The results indicate that both patent innovation and economic growth positively influence financial development. However, green finance, government investment in fixed capital, and research and development hinder financial development. The study highlights the importance of institutional quality and emphasizes the need for targeted investment.