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Application model of green economic growth and economic gap

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  • Evi Susanti Tasri
  • Syafruddin Karimi
  • Hefrizal Handra

Abstract

The aim of this paper is to investigate the conventional model of economic growth derived from the Solow model and, in addition, the green economic growth model adopted from Talberth and Bahora's model. Of the two models investigated, the Gap model represents the difference in value of the Gross Domestic Product (GDP) of conventional and green GDP. Solow's model was tested for inter-country panel data and established variable savings, population growth and technological influence on the formation of the value of GDP, while the green model for GDP consisted of the effect of variable Age Dependency Ratio (ADR), OPENNESS and Gross Fixed Capital Formation (GFCF) on the formation of a green GDP value. Regarding the results, it was ascertained that the value of GDP was conventional and that the green GDP had been affected by GFCF and EMPLOYMENT in the Gap model.

Suggested Citation

  • Evi Susanti Tasri & Syafruddin Karimi & Hefrizal Handra, 2016. "Application model of green economic growth and economic gap," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 10(1), pages 51-68.
    • Handle: RePEc:ids:ijgrec:v:10:y:2016:i:1:p:51-68
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    Cited by:

    1. Naseem Abu Jamie, 2018. "Financing Green Economy Impact on Sustainable Development," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 9(2), pages 123-128, March.

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