Impact of green finance and environmental protection on green economic recovery in South Asian economies: mediating role of FinTech

Green finance and digital finance are cornerstones of sustainable growth. Given the significant investment and funding challenges that South Asia's new energy development faces, the potential role of digital finance in this situation is uncertain. Applying panel regression analysis and using a two-step generalized method of moments (GMM) to eliminate endogeneity, this study examines the connections between green finance, financial technology (FinTech), and high-quality economic development using data from three South Asian economies between 2000 and 2018. The study demonstrates that India, Bangladesh, and Pakistan use multiple green financing initiatives, resulting in a considerable decrease in commercial CO2 across the review period, which extends environmental protection and confirms the green economic recovery. FinTech development also helps reduce CO2 emissions, making a favorable contribution. Selected South Asian countries are on track to become world leaders in green finance strategy implementation, and authorities must speed up the development of green recovery and services and strengthen banking institutions' ability to provide green loans. FinTech and green finance, it turns out, have a significant impact on green economic development. The study also has policy implications for the associated stakeholders.