Description of variables
| Variables | Definitions |
|---|---|
| GG: Environmentally adjusted multifactor productivity | Green growth is defined as the “Environmentally adjusted multifactor productivity” (EAMFP). The EAMFP is a metric employed to ascertain a nation’s capacity to generate revenue from a specified array of inputs, whilst accounting for the consumption of natural resources and the production of undesirable environmental by-products (OECD, 2020). This is equivalent to the proportion of pollution-adjusted output growth that is not attributable to alterations in the utilization of inputs (residual growth) |
| DMBA: Deposit money banks assets to GDP (%) | This variable encompasses the aggregate value of demand, time, and savings deposits at domestic deposit money banks as a percentage of GDP. These claims pertain to the central bank, other credit institutions, financial institutions, and institutional units This indicator is widely regarded as a primary barometer of a bank’s financial soundness, reflecting its capacity to mobilize resources for the purpose of loan allocation and operational financing (Liu et al., 2023) |
| SMC: Stock Market capitalization of listed domestic companies (% of GDP) | Market capitalization is the share price times the number of shares outstanding (including their several classes) for listed domestic companies. Investment funds, unit trusts, and companies whose only business goal is to hold shares of other listed companies are excluded The (SMC) is a metric used to evaluate the significance of stock markets in relation to the overall economy |
| ET: Environment-related technologies | Environment-related technologies are frequently utilized as indicators or proxies for innovation in green technology. The variable (ET) is defined as the ratio of environment-related inventions to all national inventions in all technologies Patents are a reflection of the level of inventive activity in sustainable technologies and demonstrate technical advances that can contribute to reducing environmental impacts (Wang et al., 2024). These domains include, but are not limited to, environmental management, water-related adaptation, and climate change mitigation technologies |
| RPA: Resident patent applications | The term “patent application” is understood to denote the legal and administrative proceedings involved in requesting the issuance of a patent for an invention, as well as the physical document itself and the content of the description and claims of the invention, including its procedural paperwork (World Intellectual Property Organization, WIPO, 2023) The variable “resident patent applications” refers to the number of internal patent applications that are filed by residents or companies. It measures invention and internal innovation (Hashmi & Alam, 2019) |
| NRPA: Non-residents patent applications | The term ‘non-resident patent applications' (NRPA) is employed to denote the number of patent applications that are filed by individuals or companies who are not residents of the country or region in which the application is being made (Chen et al., 2020b) The patent data encompass applications and grants categorized according to the field of technology |
| Trade: Trade (% of GDP) | Trade is defined as the sum of exports and imports of goods and services in terms of GDP (Chen et al., 2020a, b). Trade as percent of GDP is incorporated as a control variable |
| Variables | Definitions |
|---|---|
| Green growth is defined as the “Environmentally adjusted multifactor productivity” (EAMFP). The EAMFP is a metric employed to ascertain a nation’s capacity to generate revenue from a specified array of inputs, whilst accounting for the consumption of natural resources and the production of undesirable environmental by-products ( | |
| This variable encompasses the aggregate value of demand, time, and savings deposits at domestic deposit money banks as a percentage of GDP. These claims pertain to the central bank, other credit institutions, financial institutions, and institutional units | |
| Market capitalization is the share price times the number of shares outstanding (including their several classes) for listed domestic companies. Investment funds, unit trusts, and companies whose only business goal is to hold shares of other listed companies are excluded | |
| Environment-related technologies are frequently utilized as indicators or proxies for innovation in green technology. The variable (ET) is defined as the ratio of environment-related inventions to all national inventions in all technologies | |
| The term “patent application” is understood to denote the legal and administrative proceedings involved in requesting the issuance of a patent for an invention, as well as the physical document itself and the content of the description and claims of the invention, including its procedural paperwork ( | |
| The term ‘non-resident patent applications' (NRPA) is employed to denote the number of patent applications that are filed by individuals or companies who are not residents of the country or region in which the application is being made ( | |
| Trade is defined as the sum of exports and imports of goods and services in terms of GDP ( |
Note(s): There are three methodologies available to identify green patents based on the code classification: ENV-TECH (developed by OECD), IPC Green Inventory (WIPO) and Y02/Y04S Tagging scheme (European Patent Office)
The pairs of letters employed in the remainder of this article denote the variables
Source(s): Author’s compilation (2025). Data for analysis were obtained from the World Development Indicators (WDI, 2024) and the Economic Outlook of the Organization for Economic Co-operation and Development (OECD, 2020)
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