A multidimensional grey relational model considering reverse indicators and its application to the influencing factors of green finance in China
Grey Systems: Theory and Application
ISSN: 2043-9377
Article publication date: 17 May 2023
Issue publication date: 6 July 2023
Abstract
Purpose
As an important measure to promote sustainable development, green finance has developed rapidly in recent years. In order to comprehensively analyze the positive and negative indicators of the influencing factors of green finance, this paper puts forward a grey relational method of spatial-temporal panel data from the perspective of the development trend of the object dimension indicators and the performance difference between the time dimension indicators.
Design/methodology/approach
From the different perspectives of object dimension and time dimension, the positive and negative indicators are standardized differently considering the reverse of indicators and characterizing factors. The grey absolute relational degree is used to define the matrix sequence. This method reflects the development trend of objects in time and the difference characteristics among objects, which comprehensively represents the correlation between the reference panel and the comparison panel.
Findings
The results show that: (1) The object dimension reflects the internal driving force of the development of green finance in each provincial administrative region and the time dimension reflects the relationship between regional differences of influencing factors and green finance. (2) From the object dimension, the influencing factors of green finance from high to low are economic development potential, economic development level, air temperature, policy support, green innovation and air quality. (3) From the time dimension, the influencing factors of green finance from high to low are green innovation, air quality, economic development potential, economic development level, policy support and air temperature.
Originality/value
The different standardized processing methods of positive and negative indicators proposed in this paper not only eliminate the sample dimension, but also study the grey relational degree among the indicator panels from different reference dimensions. The proposed model is applied to identify the influencing factors of green finance, which expands the practical application scope of the grey relational model. The research results can provide reference for relevant departments to better promote the development of green finance.
Keywords
Acknowledgements
Funding: This work is funded by the National Natural Science Foundation of China (71801085), the National Scholarship Foundation of China, Jiangsu University Philosophy and Social Science project (2022SJYB0187) and Scientific research foundation of Nanjing University of Information Science & Technology.
Citation
Yan, S. and Xia, L. (2023), "A multidimensional grey relational model considering reverse indicators and its application to the influencing factors of green finance in China", Grey Systems: Theory and Application, Vol. 13 No. 3, pp. 558-575. https://doi.org/10.1108/GS-11-2022-0112
Publisher
:Emerald Publishing Limited
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