Studying green financing with economic development in BRI countries perspective: does public-private investment matter?

Abstract

The study aims to test and inquire about the nexus between green financing and economic development in the belt-and-road initiative (BRI) member countries with the role of public-private investments. The study used the generalized method of moments (GMM) assessment approach from 1990Q1 to 2018Q4 to evaluate research topicality. The study's findings have uncovered some hidden insights and presented new insights. In line with this, the study's findings highlighted that an accurate role of green financing is significant in economic development in BRI economies throughout the research period. The results demonstrate that the GMM method of investigation has distinct validity in establishing the overall significance of results about the role of public-private investments in BRI nations. However, the study results about public-private investments showed a varying impact on nations with high GDP per capita. Moreover, the findings from this research indicate that the development of renewable energy sources is also widely aided by applying environmental regulations. At the same time, factors including population size, technological innovation, industrial structure, and foreign direct investment (FDI) significantly control the relationship between green financing, public-private investments, and economic development. On these findings, the study also recommended practical directions for stakeholders.