Do green financing and industrial structure matter for green economic recovery? Fresh empirical insights from Vietnam

This study used a systematic empirical method, the DEA, to examine the effect of green finance on the industrial structure of Vietnam holistically to present the way forward for the improvement of green economic recovery. The empirical findings indicate that the effect of green finance on the industrial structure is 0.29, 0.37, and 1.98 on green economic recovery correspondingly. The green finance and the industrial structure present in Vietnam lead to significant economic benefits for the green economic recovery in the country as a whole. Additionally, we included other factors such as the urbanization, industrialization, and population growth to predict the green economic recovery better. The DEA technique was applied in the analysis, and the findings were robust. In addition, four hypothetical time-dependent cases showed that Vietnam's anticipated green finance and industrial structure nexus for the year 2001 to 2019. Empirical forecast findings indicate that the percentage of industrial structure is declining, and as a consequence, green finance has risen by 11.9% on average during the period. Reductions in industrial structure will cause Vietnam's green funding to decline significantly. Such findings thus proposed several policy implications for essential stakeholders. (c) 2022 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.

Automated summary

This study examines the impact of green finance on the industrial structure of Vietnam using the DEA method. The results show that green finance has a positive effect on both the industrial structure and green economic recovery. Other factors such as urbanization, industrialization, and population growth were also considered in predicting the green economic recovery. The findings provide policy implications for stakeholders.