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Keywords

green finance, financial security, principal component analysis, factor analysis, VAR model

Abstract

The environmental and resource shortage are now the outstanding problems in the economic development, which have impacted on the financial safety of our country in the important period of economic structure transformation.As a resolution to support environmental improvement and cope with climate change,green finance plays an increasingly important role in improving the environment and maintaining the stability of financial security.This paper selects the monthly time series data from January 2016 to December 2019,constructs the financial security index with subjective assignment and principal component analysis.It also constructs the indicators of green financial development and various macroeconomic factors that affect China's current financial security level by means of factor analysis.On this basis,it builds up the VAR model,and conducts an empirical study on the internal relationship and mechanism between China's green financial development and financial security level.The results show that the development of green finance will significantly promote China's financial security in both the long term and the short term.

DOI

10.16315/j.stm.2021.03.010

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