The Development of Green Finance and the Rising Status of China's Manufacturing Value Chain

Green finance has gradually become an imperative engine for the high-quality development of the manufacturing industry in the new era. Using 30 provincial panel data sets of China from 2011 to 2020, this paper explores whether green finance will effectively impact the rise of China's manufacturing value chain using green finance as the breakthrough point. The results show that: (1) The implementation of green finance policy has a promoting effect on the rise of the manufacturing value chain. (2) It has significant regional heterogeneity characteristics in the process of green finance that influence the manufacturing value chain. In the transformation and upgrading of the manufacturing industry, the role of green finance in regions with developed economic bases is superior to those in comparatively backward areas. (3) Innovation and technological development are significant factors in the development of the manufacturing industry, and the intensity of innovative development inputs as well as the labour factor of highly skilled workers have a moderating role in the process of green finance for climbing up the value chain status of manufacturing. Based on the empirical evidence, policy implications are suggested.