A spatial analysis of financial development and green complexity

Yaşar P., DALGIÇ B., Fazlıoğlu B.

Applied Economics Letters, 2026 (SSCI, Scopus) identifier

  • Publication Type: Article / Article
  • Publication Date: 2026
  • Doi Number: 10.1080/13504851.2026.2632178
  • Journal Name: Applied Economics Letters
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, ABI/INFORM, EconLit, Geobase, Public Affairs Index
  • Keywords: financial development, province level, spatial effects, The green complexity
  • Hacettepe University Affiliated: Yes

Abstract

This paper examines the impact of financial development on the green complexity of Turkey’s provinces. Utilizing a spatial panel data model, the results suggest that the deposits-to-GDP ratio, the credit-to-GDP ratio, and the number of bank branches enhance the green complexity of Turkish provinces, with significant spatial spillover effects. The analysis highlights the important role of financial development in strengthening regional green capabilities and underscores the need to incentivize financial development to diffuse green technologies and upgrade the quality of green products in lagging regions.