The Impact of Green Investment, Eco-Innovation, and Financial Inclusion on Sustainable Development: Evidence from China

Abstract

Recently, sustainable development is demanded to be a compulsory requirement by international communities due to environmental and economic instability, hence, encouraging scholars to explore various approaches through which countries could achieve it. In this lieu, the present article explores the concept of green investment, eco-innovation, and financial inclusion and their effectiveness on sustainable development in the context of China. The article has extracted the data from secondary sources like Organization for Economic Co-operation and Development (OECD), Bloomberg, and World Development Indicators (WDI) from 1991 to 2020. The study has applied the Bayesian Auto-regressive Distributed Lags (BARDL) model to check the association between the understudy constructs. The results exposed that the green investment, eco-innovation index, R&D expenditures, commercial bank branches, commercial bank depositors, and commercial bank borrowers have a positive and significant linkage with sustainable development (human development index) in China. The study guides policymakers in developing policies to enhance sustainable development using green investment, eco-innovation, and financial inclusion.