THE IMPACT OF TECHNOLOGY INNOVATION AND GREEN FINANCE ON ECONOMIC GROWTH EMPIRICAL EVIDENCE OF ASIAN COUNTRIES DOES FINANCIAL FREEDOM MATTERS

Abstract

This unique study examines the significance offinancial freedom on the relationship between Technology innovation. Green field investment and Economic growth of Asian countries. We used cross-country data for financial sector from 2000 to 2020. The measurement methods used were: pooled regression and 2SLS with GMM. We have used the quantitative research method to measure the influence ofthe variables representing the Financial Freedom activities on technological innovations, Greenfield investment projects and economic growth. We document that in when green field interact with financial freedom than its magnitude increases and positive, for technology innovation which is measured from Research and development and after interaction with financial freedom its result is statistical but negative and for that have the impact of technology innovation but magnitude is low and we need to restrict the financial treedom to avoid the misuse. Our findings indicate that the introduction offinancial freedom strengthens the stability and growth position and mitigates risk to a certain extent, while technology innovation and green field investments contribute significantly country's economic growth. Our results also indicate that the introduction offinancial freedom strengthens the stability and growth position and mitigates risk to a certain extent, while technology innovation and green field investments contribute significantly to a country's economic growth. We also applied control variable, which further confirms our conventional results. After all, this research suggests that countries adapting a model boosts economic growth and has a positive elTect on the market, which is beneficial for the region's economic stability.