Economic recovery, industrial structure and natural resource utilization efficiency in China: Effect on green economic recovery

Abstract

A nation's financial development is necessary to execute green economic recovery techniques, one of the most highly regarded strategies for guaranteeing long-term financial development at the national level. The paper examined the link between financial stability, industrial structure, and resource utilization efficiency using the 2005–2020 entropy weight technique and the coupling coordination degree assessment method. Researchers have discovered a link between industrial structure and resource efficiency, although that link is not as significant or elastic as first thought. China's industrial structure has changed, but multiple industries remain predominant, negatively influencing natural resource usage efficiency. Natural resource utilization efficiency improves as a result of economic advancement. Promoting investment and financial sector redistribution may be used to invest scarce resources in sectors with greater efficiency and economic performance, resulting in the optimization and revamping of conventional businesses. On the other hand, foreign direct investment greatly enhanced natural resource use efficiency than government investment behaviour as a control variable. The significance level test for urbanization factors failed, and the coefficient value is tiny, suggesting that China's urbanization cannot considerably increase resource consumption efficiency. Efficiency in using natural resources depends on the amount of research and development money invested in the company. The study presents a counteraction and recommendations based on the empirical findings for sustainable growth.