Green Finance and Manufacturing Transformation: A Coupling Approach to Sustainable Competitiveness
Yang Chen, Yongkang Yi, Oleksii Lyulyov, Tetyana Pimonenko
Keywords:
green finance, green transformation, sustainable competitiveness, coupling
JEL Classification:
Abstract:
Green finance serves as a critical enabling instrument and resource-allocation mechanism, while the green transformation of the manufacturing industry constitutes both the core implementation domain and the ultimate objective of industrial upgrading. The effective coupling and coordinated development between these two dimensions represent a key pathway for achieving sustainable competitiveness. This study investigates how green finance develops in conjunction with the green transformation of manufacturing and examines whether the interaction between these two processes contributes to sustainable competitiveness. Using provincial-level data for 30 Chinese provinces over the 2011-2023 period, separate multidimensional indicator systems are developed to quantify green finance development and the green transformation of manufacturing. The empirical framework combines several complementary techniques: entropy-weighted TOPSIS for green finance assessment, a super-efficiency SBM model for manufacturing transformation, an improved coupling-coordination model for evaluating their interaction, Dagum Gini decomposition for regional disparities, and kernel density estimation for distributional dynamics. Sustainable competitiveness is represented by the degree of coordination between the two systems, reflecting the extent to which financial development and manufacturing transformation progress in a mutually compatible manner while supporting economic and environmental objectives. The empirical results reveal a general upward trajectory in coordination between green finance and manufacturing transformation, suggesting that their development has become increasingly synchronized across Chinese provinces. Despite this overall improvement, substantial spatial heterogeneity remains: provinces in the eastern region generally exhibit stronger coordination than those in the other regional groups. The study proposes policy recommendations to enhance alignment between green finance and industrial transformation, including developing innovation-driven financial instruments, strengthening policy coordination, and improving green financial market mechanisms.
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 Green Finance and Manufacturing Transformation: A Coupling Approach to Sustainable Competitiveness [PDF file] [Filesize: 1.71 MB]
 10.7441/joc.2026.03.07
Chen, Y., Yi, Y., Lyulyov, O., & Pimonenko, T. (2026). Green finance and manufacturing transformation: A coupling approach to sustainable competitiveness. Journal of Competitiveness, 18(3), 179–211. https://doi.org/10.7441/joc.2026.03.07
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