The Nexus Of Investment Efficiency And Green Finance In Indonesia: A Study Of Credit Dynamics And Financial Interdependence
DOI:
https://doi.org/10.55227/ijhess.v5i2.1907Keywords:
financial investment, green finance, green credit, investment efficiencyAbstract
This study aims to analyze the interdependence among financial investment, investment efficiency, green credit, and green finance within the context of monetary policy in Indonesia. Utilizing annual data from 2014 to 2023 and employing the Vector Auto Regression (VAR) approach, the study explores the dynamic relationships among these variables across short-, medium-, and long-term horizons. The findings reveal that in the short run, financial investment is influenced by both investment efficiency and green credit. In the medium term, the interdependence becomes more structured, with green finance emerging as an increasingly significant factor. Over the long term, green finance demonstrates a systemic influence on all variables, including investment efficiency and financial investment. These results suggest that monetary policy instruments integrated with green finance can enhance investment allocation efficiency and support the transition toward a sustainable economy. This research contributes both theoretically and practically to the advancement of Indonesia’s green economy agenda.
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Copyright (c) 2025 Renni Maretha, Lia Nazliana Nasution, Rusiadi Rusiadi, Bakhtiar Efendi, Suhendi Suhendi
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