Abstract
China’s economic development has made world-renowned achievements which have subsequently brought serious environmental pollution problems. As a large manufacturing country, the industrial value added in China accounts for nearly 30% of the global share. However, the manufacturing industry lacks competence. Therefore, considering environmental protection issues while promoting manufacturing industry upgrading (MIU) is a critical goal for China at present. By applying panel data from China’s Yangtze River Economic Belt (YREB) from 2010 to 2019, this paper uses a spatial econometric model to study the effect of green finance (GF) on upgrading (hereafter, upgrading refers to the improvement of the manufacturing structure and the transition toward green manufacturing) the manufacturing industry. This study found that the impact of GF on MIU in the YREB is significantly positive. GF has a good positive spatial spillover effect. Moreover, the high level of urbanization and high freight volume have positive impacts, the impacts of foreign investment and government fiscal expenditure are significantly negative, and the effect of the level of human capital on upgrading is not obvious. Therefore, vigorously developing green finance, optimizing the environment for manufacturing upgrades, and cultivating green and high-quality talents should be the future direction of government policy formulation.
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