Can Synergy Effect Exist between Green Finance and Industrial Structure Upgrade in China?

Abstract

The semi-annual data are selected from 2013 to 2018 for empirical research on the relationship between China’s green finance and industrial structure as well as the effect of green finance supports industrial structure upgrading. By establishing grey relational and time series dynamic models, conclusions as following: 1) Green finance has a strong grey relational with the three industrial structures; there is a close synergy effect; 2) The second industry has the strongest correlation, followed by the tertiary industry; green finance is of great significance to promote the upgrading; 3) Three industrial structures have positive correlation with green finance development and can promot it conversely; the second and the tertiary industry are of high significance level; 4) Green finance can support industrial structure upgrading effectively; green credit and green securities as the leading force have a significantly positive correlation with the upgrading of the industrial structure. Compared, green credit is more obvious and green securities space is still large; 5) Because of cumulative effect and lag effect, previous industrial structure upgrading has a driving effect on the current; lag period is half a year; 6) Increasing R&D investment and reducing the “two high and one surplus” industries credit scale have a positive effect on upgrading China’s industrial structure.