Abstract: In-depth study of the impact mechanism of green finance on the quality of economic growth forms the basis to build the system of green finance and promote high-quality economic development. This paper uses green total factor productivity ( TFP) to measure the quality of economic development, constructs an endogenous economic growth model that includes green credit, green investment, green securities, carbon finance and so on, and explains the impact mechanism, effection and characteristics of green finance on green total factor productivity from theoretical and empirical perspectives. The research results show the improvement of the green finance level promotes the increase of green TFP; there is a nonlinear relationship between green finance and green total factor productivity, and the threshold effect exists. When the green finance development index is lower than the threshold, the green finance development index has an insignificant impact on the green total factor productivity. When the green finance development index is higher than the threshold, the green finance development index has a greater impact on green total factor productivity. Further study shows that the green finance development index is lower than the threshold in most provinces of China. This paper provides a reference for building a theoretic system of green finance, as well as evidence to promote the development of green finance with different focuses, by stages and regions to improve the green TFP and ultimately realize high-quality economic development.

Key words: Green Finance, Green Total Factor Productivity, Dynamic Panel Data, Spatial Dubin Threshold model, Threshold Effect