Impact of green finance and fintech on sustainable economic growth: Empirical evidence from India

Abstract

This research study analytically investigates the influence of green finance and financial technology on sustainable economic growth. The analysis is based on data from Indian states from 2010 to 2021. The research paper uses the panel regression method to examine the association between fintech, green finance and economic growth by applying a two-step GMM (generalized model of moments) to determine the endogeneity issues of the variables. This paper reveals that green finance widely helps quality economic growth by significantly impacting finance structure, financial effectiveness, and environmental quality protection development. Furthermore, fintech enhances the significant effect of green finance in the finance structure and environmental quality protection while lacking consequences on the association between green finance and economic effectiveness. Based on the results, the current research paper offers policy submissions for policymakers and the Government of India, including strengthening the consolidation of fintech growth with green finance, structuring a quality environmental revelation outline to control state governments in refining the effectiveness of green finance, and emerging prolonged satisfactory protocol as an outside involvement proceeding to encourage green finance in the non-public sector.

Keywords

• Green finance
• Fintech
• Economic growth
• Quality environment and finance structure