Green Financing for Sustainable Economic Growth: Exploring Critical Factors Towards Resilient Economies

This study investigates the role of green financing in promoting sustainable economic growth and explores the critical factors that contribute to building resilient economies. Green financing, which encompasses investments and financial practices that prioritize environmental sustainability, has gained increasing attention as a means to address pressing environmental challenges while fostering economic prosperity. Green finance development involves investments, loans, and financial products that prioritize environmental sustainability, resource conservation, and pollution reduction. The findings indicate that Green Credit and Green Securities have significant positive effects on economic growth in the long run, emphasizing the importance of integrating green financing practices into the financial system. The paper contributes to the growing body of literature on green finance and its role in shaping sustainable economic growth. Using data from the World Bank for the period 1995 to 2020, this research examines the relationship between green financial development indicators, namely Green Credit, Green Securities, Green Insurance, and Green Investment, and their impact on Economic Growth. Questionnaire survey is used to conduct quantitative analysis resulting in descriptive statistics, correlation matrix and augmented dickey-fuller test. By embracing green financing practices and understanding their impact on various economic sectors, policymakers, financial institutions, and businesses can work together to build resilient economies that safeguard the environment for future generations.