The Research on Financial Development, Environmental Regulation, and Economic Growth in Anhui Province

Jiajia Peng

doi:10.6981/FEM.202411_5(11).0017

Authors

Jiajia Peng

DOI:

https://doi.org/10.6981/FEM.202411_5(11).0017

Keywords:

Anhui Province; Financial Development; Environmental Regulation; Economic Growth; Threshold Effect.

Abstract

Based on panel data from 16 prefecture-level cities in Anhui Province from 2009 to 2019, this paper constructs a threshold effect model to explore in-depth the internal relationship and mechanism between financial development, environmental regulation, and economic growth at different stages of financial development in Anhui Province. The empirical findings reveal significant regional disparities in economic growth across Anhui Province. In addition to financial development and environmental regulation, human capital and technological output are also key factors. The impact of environmental regulation and financial development on economic growth presents a nonlinear relationship, showing either a "J-shaped" or positive "U-shaped" curve under different levels of financial development. Based on these findings, it is recommended that Anhui Province place greater emphasis on ecosystem protection, optimize the financial development system, and promote the coordinated advancement of environmental regulation and financial development to foster high-quality and sustainable economic growth. These insights can help guide Anhui Province's future economic development strategies, improve related policy formulation, and enhance the effectiveness of policy implementation.

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