The synergistic impact of green finance and digital economy on innovation agglomeration: Evidence from the Yangtze River Delta and the Pearl River Delta in China

Abstract

This study integrates green finance, digital economy and innovation agglomeration into the same theoretical framework, selects relevant data from the YRD and PRD from 2011 to 2019, and uses a panel data model to explore the synergistic impact of digital economy and green finance on innovation agglomeration. The study’s conclusions show that green finance can significantly promote innovation agglomeration in synergy with the digital economy. The findings of the mechanism analysis indicate that the positive effects of green finance and digital economy on innovation agglomeration can be achieved through entrepreneurship activity and green technology innovation. Furthermore, the study uncovers nonlinear characteristics in the synergistic promotion of innovation agglomeration by green finance and the digital economy. In the YRD, it is noted that there exists a double threshold effect for industrial structure rationalization, whereas a single threshold impact is detected for industrial structure upgrading. In contrast, the rationalization and upgrading of the industrial structure in the PRD do not have a threshold effect. The aforementioned findings provide significant insights for policymakers who aim to promote the congruent growth of green finance and the digital economy.