Green finance and job creation: Analyzing employment effects in China's manufacturing industry within green finance innovation and reform pilot zones

As environmental issues related to global climate change intensify, green finance (GF) policies have emerged as vital tools for promoting sustainable development. This study examines the impact of GF policies on employment in China's manufacturing sector. Using unbalanced panel data of Chinese listed manufacturing enterprises from 2012 to 2021, and employing the difference-in-differences model, this study analyzes the impact of establishing China's GF innovation and reform pilot zones on manufacturing employment. The results show that the implementation of GF policies significantly increases employment in the manufacturing sector, with a more pronounced effect in non-state-owned enterprises, non-heavy-polluting industries, and high-tech manufacturing enterprises. Additionally, the study finds that GF policies alleviate financing constraints, enhancing employment levels in manufacturing enterprises. This research contributes to the existing literature by elucidating the employment effects of GF and providing insights for policymakers to use in fostering GF for economic growth.