DefinePK

Abstract

Countries across the globe are making green growth a central part of their economic and green growth strategies, yet in South Asia, the connection between FinTech, green finance, and green growth hasn't been deeply examined. The study explores green growth factors triggered by FinTech together with green financial elements and reveals their fundamental distribution channels in Pakistan. The population for this study includes all financial sectors in Pakistan. For analyzing individual impacts, time series data spanning 2010 to 2023 were utilized. Data collection sources include International Monetary Fund (IMF), Word Development Indicators (WDI), and Asian development Bank (ADB). The analysis tackles short term and long-term effects by employing combination of Granger causality tests with Autoregressive Distributed Lag (ARDL) and Vector Autoregression (VAR) models. Research evidence shows that FinTech and green finance functions as primary drivers for green growth. Due Macroeconomic instability in Pakistan, the direct impacts between FinTech and green growth but green bonds and crowdfunding demonstrate a 20 percent mediation strength. The effects of FinTech and green financial solutions on green growth differ between all South Asia countries due to distinctive regional characteristics. Research findings show FinTech drives green growth mainly through its enhancement in green finances. This study builds an extensive model for examining regional developing economies' green growth through a thorough analysis of FinTech development links with green finance. FinTech demonstrates exceptional potential for speeding up green growth which provides crucial direction to countries dedicated to building sustainable and low carbon infrastructures.