An Empirical Study Of Financial Development Affect Green Total Factor Productivity In Guangdong Province

Total factor productivity growth is the important source of long-term economic growth.Taking into account the unexpected output such as resource inputs and pollution,the green total factor productivity is the key to transformation of the mode of economic growth and guarantee of realizing economic sustainable growth.So the core of green development is the green total factor productivity.Green total factor productivity is necessarily rely on green technology innovation,but technological innovation is a high investment,high risk,long return cycle process.It need financial support.Because of Guangdong economic and social development stage and the conditions of resource endowment in the typical and representative,as a national low carbon pilot province,systematic research the relationship between financial development and green total factor productivity has important theoretical and practical significance.Paper first analysis the mechanism of financial support for green development from four aspects:capital support effect,capital allocation effect,enterprise supervision effect and green finance effect.At the same time,because the externality of green finance is caused by too little supply and below the level required by the pareto efficiency,there is market failure.Then take Guangdong province as an example to study the effect of financial development on green total factor productivity.(1)Based on the financial depth and width,paper establish an index system,and make composite index to measure the level of financial development with the improved CRITIC evaluation method.The results show that Guangdong finance has developed greatly in general.(2)To measure green output with green GDP,and based on the Cobb-Douglas production function,obtained Guangdong green total factor productivity.And found:1997-2013 green total factor productivity growth rate overall trend compared with the operation of the macroeconomic situation.Green total factor productivity growth has not brought environmental damage reduced.However,after 2013,although the GDP growth rate slowed down,the green total factor productivity growth rate and green GDP growth rate increased,indicating that the development of green economy in Guangdong province has undergone a qualitative change.(3)The multivariate regression model of financial development and green total factor productivity is constructed based on the stability test.The research results show that the financial development every increase 1 unit,green total factor productivity fell by 0.299 units.That is to say,from the overall,1996-2016,Guangdong financial development mainly plays a role of inhibiting the growth of green total factor productivity,indicates that the financial development of Guangdong pay more attention to economic output.Financial development has insufficient attention to environmental protection,insufficient support for green total factor productivity.But further analysis found that in 1997-2013,financial development and green total factor productivity showed negative correlation.Traditional financial model with profit as the only motive is still dominant.Financial development pay more attention to economic growth and less concern for the environment;But since 2013,the relationship between financial development and green total factor productivity has been positively correlated.This turning point coincides with the rapid development of green finance in recent years.Finally put forward the suggestions:Guangdong should adhere to the green development strategy.To construct Guangdong green finance system.Increase support for the green industry.