The impact of green finance on industrial reasonability in China: empirical research based on the spatial panel Durbin model

Green finance is an essential way to cope with environmental pollution, promote the transformation of industrial structure and upgrade, and finally construct a resource-conserving and environment-friendly society and achieve the goal of sustainable development. This study explores the influence of green finance on industrial reasonability and is based on sample data of 30 provinces in China from 2009 to 2019. Through the application of the spatial panel Durbin model with the weight matrix based on the geographical distance, the influence of green finance on the industrial structure as well as its spatial spillover effects are analyzed. The degree of industrial reasonability and the index of green finance development are also examined by applying the Theil index and the entropy method. The empirical results demonstrate two things. First, there is a strong aggregation of the spatial distribution of industrial reasonability, and the spatial pattern remains relatively constant over the 11 years. The main aggregated types are the H–H and L-L between the regions. Second, green finance can promote the industrial reasonability of this region, while it has a significant negative spatial spillover effect on the process of industrial reasonability in adjacent regions.