Green Finance’s Impact on Economic Resilience – The Moderating Role of Market Integration

Anh Dang

doi:10.18778/1508-2008.29.13

Authors

Anh Dang Faculty of Finance, Ho Chi Minh University of Banking, Vietnam https://orcid.org/0009-0007-2575-4190

DOI:

https://doi.org/10.18778/1508-2008.29.13

Keywords:

green finance, economic resilience, market integration, emerging economies

Abstract

This study examines whether and how green finance enhances economic resilience in emerging economies and evaluates the moderating role of market integration in this relationship. Using the System Generalized Method of Moments (SGMM) estimation to address issues of endogeneity and lagged dependent variables, the empirical results indicate that green finance exerts a positive and statistically significant influence on economic resilience. Furthermore, a high level of market integration enhances the effectiveness of green finance in strengthening a country’s ability to withstand and recover from economic, social, and environmental shocks. Based on these findings, the study recommends that emerging economies promote the development of green finance by establishing clear policy frameworks, advancing sustainable financial instruments, and encouraging the flow of green capital into the real economy. Simultaneously, efforts should be made to deepen market integration through trade liberalization, regional financial cooperation, and improvements in the investment climate, to fully leverage the spillover benefits of globalization and reinforce the foundation for economic recovery amid increasing global uncertainties.

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