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September 17, 2025Applied Economics4 citationsOpen Access

From digital finance to green growth: the role of FinTech in sustainable manufacturing

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YBYa BuXDXinze DuHLHui Li

Key Points

  • FinTech significantly boosts green technological innovation among manufacturing firms, enhancing sustainability efforts.
  • The Double Machine Learning approach effectively addresses high-dimensional data challenges in this analysis.
  • Findings highlight that FinTech helps alleviate financing constraints and increases R&D investments in firms.
  • Policy alignment and environmental information disclosure amplify FinTech's contribution to green technological progress.

Abstract

FinTech harnesses emerging technologies to drive corporate innovation, playing a crucial role in promoting green technological advancement and serving as a key pathway towards global sustainable development. This study employs a multi-sector technological progress model to examine firms' R&D activities and interactions with financial institutions, investigating the impact and mechanisms of FinTech on green technological innovation. An empirical analysis is conducted using the Double Machine Learning (DML) approach, which addresses the curse of dimensionality and mitigates multicollinearity in high-dimensional data. The findings reveal that FinTech significantly enhances manufacturing enterprises' preference for green technological innovation, a conclusion that remains robust across various sensitivity tests. Additionally, FinTech fosters green innovation by alleviating financing constraints, increasing internal R&D investment, and expanding the number of R&D personnel. Furthermore, corporate environmental information disclosure and alignment with government policies positively moderate this process, amplifying FinTech's role in driving green technological progress. These findings provide scientific empirical evidence and policy insights to optimize the effectiveness of FinTech in promoting green innovation in manufacturing enterprises, contributing to the realization of national sustainable development goals.

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Cite This Study

Bu et al. (2025) studied this question.

synapsesocial.com/papers/68d45e5831b076d99fa5e916https://doi.org/10.1080/00036846.2025.2560685
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