Does CSR Improve the Quality of Economic Growth? Based on the Perspective of Green Innovation

Taking into consideration existing research on corporate social responsibility (CSR) and green innovation, this study categorizes green innovation into substantive and strategic types. For this study, we constructed a general equilibrium model that integrates the effects of CSR on substantive and strategic green innovation, exploring changes in emission reduction technologies caused by firms' CSR efforts and their impact on economic growth quality. We derived the economic growth trajectory for substantive green innovation and strategic green innovation as a function of CSR. The theoretical model that we developed in this study shows that CSR can improve economic growth quality. To empirically test our theoretical model, we used data at the provincial level in China from 2013 to 2022; these empirical results are consistent with the theoretical model. In addition, robustness tests and endogeneity issues were conducted; our findings from these tests show that substantive green innovation acts as a transmission mechanism through which CSR promotes economic growth quality. Additionally, the credit preferences of financial institutions positively moderate the relationship between CSR and economic growth quality. This study provides valuable insights for firms aiming to fulfill CSR obligations and enhance their capability in substantive green innovation.