Exploring the interconnections of green financing, financial development, technological innovation, and agricultural production: evidence from Tanzania

This study explores the interconnections between green financing, financial development, technological innovation, and agricultural production in Tanzania, guided by Keynesian and endogenous growth theories. Using annual data from 1990 to 2023, the research employs the Phillips-Perron unit root test and the Bound cointegration test and the ARDL model evaluate the stationarity, cointegration and long-run equilibrium relationships respectively. The Phillips-Perron unit root test and the Bound cointegration test results reveal that variables have different order of integrations and exhibits long run relationship. Further, the ARDL results indicate that green financing, financial development, technology, and human capital have varying effects on agricultural production in long run. While in the short run, green financing, technological innovation, and human capital positively influence agricultural output, but financial development exerts a negative impact. The error correction term confirms a stable relationship between the variables. The findings suggest that policymakers should prioritise investment in green financing, technological advancements, and human capital development and directing more credit to the agricultural sector to boost agricultural productivity.