Do green financing and industrial structure matter for green economic recovery? Fresh empirical insights from Vietnam

Abstract

This study used a systematic empirical method, the DEA, to examine the effect of green finance on the industrial structure of Vietnam holistically to present the way forward for the improvement of green economic recovery. The empirical findings indicate that the effect of green finance on the industrial structure is 0.29, 0.37, and 1.98 on green economic recovery correspondingly. The green finance and the industrial structure present in Vietnam lead to significant economic benefits for the green economic recovery in the country as a whole. Additionally, we included other factors such as the urbanization, industrialization, and population growth to predict the green economic recovery better. The DEA technique was applied in the analysis, and the findings were robust. In addition, four hypothetical time-dependent cases showed that Vietnam’s anticipated green finance and industrial structure nexus for the year 2001 to 2019. Empirical forecast findings indicate that the percentage of industrial structure is declining, and as a consequence, green finance has risen by 11.9% on average during the period. Reductions in industrial structure will cause Vietnam’s green funding to decline significantly. Such findings thus proposed several policy implications for essential stakeholders.