Analyzing the Relationship between Green Finance and Agricultural Industrial Upgrading: A Panel Data Study of 31 Provinces in China

Abstract

This study examines the impact of green finance on optimizing China’s agricultural industrial structure. It emphasizes the importance of innovative green financial services, improved efficiency, tailored regional approaches, and enhanced foresight to foster a high-level development in the agricultural sector amid China’s economic transformation. Based on the provincial panel data of 31 provinces in China from 2012 to 2021, this study empirically tests the effect mechanism of green finance on the optimization process of the agricultural industrial structure by constructing a fixed-effects model. This study finds that green finance can effectively promote the development of the optimization of the agricultural industrial structure. Under the current trend of China’s economic structural transformation and optimization, we suggest that China should innovate green financial service products, improve the efficiency of green finance, and enhance the depth of green financial services for the optimization of the agricultural industrial structure. It is required to strengthen foresight and improve relevant laws, regulations, policies, and standards. To help green finance be better promoted, a high-level development of the agricultural industrial structure is required.