The Impact of Green Finance on China's Macroeconomic Resilience and Sustainable Development: An Empirical Analysis Based on 2011-2022 Provincial Panel Data

Macroeconomic resilience is important tomaintain a more persistent economic growth as well as overcomes the external shocks. Under GMM framework, this study selects the spatial panel data of 30 provinces in China from 2011 to 2022 to examine the macroeconomic resilience level within China. The results show that: 1) Green finance has a positive effect on China's macroeconomic resilience. (2) Technological innovation, industrial structure upgrading and risk management are important channels through which green finance can affect economic resilience. (3) In the process of green finance enabling economic resilience, there is a nonlinear impact on economic resilience and a significant threshold effect. (4) The impact of green finance on enhancing China's macroeconomic resilience is spatially heterogeneous, and the promotion effect is more significant in the provinces with high economic development level. The government should encourage and support green finance industries which will then support the sustainable and healthy development of China's economy and environment.