Sustainable growth unveiled: exploring the nexus of green finance and high-quality economic development in China

Amidst global sustainability challenges, green finance emerges as a crucial instrument for advancing sustainable development, garnering increasing attention for its pivotal role in fostering high-quality economic development (HQED), particularly within the dynamic economic landscape of China. This study delves into the nexus between green finance and HQED across 30 Chinese provinces from 2012 to 2021. Employing the entropy method, indices for green finance and HQED index system are calculated, and their interaction is analyzed through a panel data model, incorporating tests for moderating effects of FinTech and green technological innovation, as well as assessing the heterogeneity across diverse regions. The findings highlight green finance's significant role in enhancing HQED, with notable regional disparities. Specifically, the eastern region shows the strongest impact, followed by the central region, while the western and northeastern regions exhibit weaker influences. The study also identifies FinTech and green technological innovation as pivotal moderators, amplifying green finance's positive effect on HQED. These insights underscore green finance's importance in driving sustainable economic growth and highlight the necessity for region-specific strategies to optimize its impact. Policy recommendations based on these findings include prioritizing the development of green finance, formulating region-specific strategies, and leveraging the catalytic roles of FinTech and green technological innovation to enhance the efficacy of green finance in achieving HQED.