The role of green finance and digital inclusive finance in promoting economic sustainable development: A perspective from new quality productivity

Environmental pollution coupled with high economic growth poses a significant challenge for developing countries. Achieving sustainable economic development is a crucial issue that these countries must confront. In this paper, the promoting mechanism of green finance (GF) and digital inclusive finance (DIF) on economic sustainable development (ESD) is investigated. We develop the Economic Sustainable Development Index (ESDI), the Green Finance Development Index (GFDI), and the New Quality Productivity Index (NQPI) to evaluate economic sustainability, green finance advancement, and new quality productivity (NQP), respectively. Utilizing comprehensive panel data encompassing 13 prefecture-level cities in Jiangsu province from 2013 to 2022, we examine how GF and DIF foster sustainable economic development in Jiangsu through NQP. Empirical results show that GF, DIF, and ESD in Jiangsu are increasing, with southern Jiangsu leading the way. Moreover, the growth of GF and DIF positively impacts ESD. Furthermore, NQP serves as a pivotal mediator in the relationship between GF and DIF and their influence on ESD. Consequently, there is a need for the government and financial sectors to further enhance green finance policies, digital infrastructure, the dissemination of GF and DIF, and funding to nurture new quality productivity.