CAREC Institute Contributes to Discussions About New Finance

5 Jul 2023

On July 5, Dr. Asif Razzaq, Senior Research Specialist of the CAREC Institute, spoke online at the International Conference on “New Finance and Economics” and Global Communication, which was hosted by the College of International Education, Southwestern University of Finance and Economics, China. His presentation was on “Revolutionizing Finance and Sustainability: Uncovering the Intersection of Digitization, Green Growth, and Big Data.”

Based on his recent research, Dr. Asif Razzaq talked about how digital finance drives green growth and how the relationship between them differs across regions in China. The People’s Republic of China, adhering to the practice of green growth, has achieved significant results in the use of digital finance, which has expanded the financial inclusion and opportunities of the green economy towards green growth, contributing to the efficient allocation of financial resources and achieving equitable development. Digital finance has positively impacted green growth in China by reducing energy poverty and improving the digital transformation of enterprises. A significant positive effect of digital finance is observed in the eastern and central regions of China and to a lesser extent in the western region, due to the abundant and concentrated resources, technical capabilities and environmental protection mechanisms. The western region is underdeveloped, which limits the role of digital finance in promoting green growth.

In his presentation, Dr. Asif Razzaq recommends policymakers to further promote the deep integration of digital technology and financial business and strengthen digital finance oversight. Local authorities should seize the opportunities of digital finance to reduce energy poverty and increase the digitalization of enterprises. Funding should be directed towards clean and sustainable technologies, research and development, and corporate products to optimize energy development efficiency and use efficiency. In order to strengthen the role of digital finance in expanding green growth opportunities, it is necessary to promote a digital finance development model supported by digital technologies and with the participation of various financial actors. Public-private partnerships will contribute to the strengthening of digital infrastructure in less developed regions and for the development of fintech companies. “Underdeveloped regions should use the experience of developed regions in building digital finance and digitalization of local enterprises,” said Dr. Asif Razzaq.

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