Study on the Impact of Green Finance on Total Factor Productivity of Manufacturing Enterprises in the Yellow River Basin of China

Fuwang Si

doi:10.6981/FEM.202503_6(3).0009

Authors

Fuwang Si

DOI:

https://doi.org/10.6981/FEM.202503_6(3).0009

Keywords:

Green Finance; Manufacturing Firms; Total Factor Productivity (TFP); Green Technology Innovation; Yellow River Basin.

Abstract

Improving the total factor productivity (TFP) of manufacturing firms is essential for attaining high-quality growth in the Yellow River Basin, with green financing serving a critical function in this endeavor. This study examines the influence of green finance on total factor productivity (TFP) using data from A-share listed manufacturing businesses in the Yellow River Basin from 2010 to 2020, and investigates the underlying causes. The empirical findings indicate that green finance substantially improves the total factor productivity of manufacturing firms. Moreover, the mechanism analysis indicates that green technological innovation serves as a mediator between green financing and total factor productivity (TFP). This study enhances the current literature by elucidating the connection between green finance and manufacturing total factor productivity (TFP), while presenting empirical evidence and policy recommendations for advancing sustainable development in the Yellow River Basin via green finance initiatives.

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