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Green Growth: Theory and Evidence

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  • Huang, Yongfu
  • Quibria, M. G.

Abstract

What are the major determinants of green growth? What role can the government play to promote green growth? To address these questions, this paper develops a simple Green Solow model that sheds light on the role of finance and technology in the process of green growth. The empirical section of the article augments this canonical green growth model to include structural variables relating to finance, technological development, trade openness, natural resource exploitations, and areas where the government can play an important role. In addition, the use of the spatially-corrected generalized method moments approach affords us to explore the role of such factors as growth performance of the neighbouring countries, domestic learning or determination to achieve its national desired target, and political and economic shocks in the process of green growth. It is hoped that research reported in the paper will stimulate further research in the area.

Suggested Citation

  • Huang, Yongfu & Quibria, M. G., 2013. "Green Growth: Theory and Evidence," WIDER Working Paper Series 056, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2013-056
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    References listed on IDEAS

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    Cited by:

    1. Rische, Marie-Christin & Röhlig, Andreas Marcus & Stöver, Jana, 2014. "Green, greener, grey: Disentangling different types of green growth," HWWI Research Papers 160, Hamburg Institute of International Economics (HWWI).
    2. You, Jing & Huang, Yongfu, 2013. "Green-to-Grey China: Determinants and Forecasts of its Green Growth," MPRA Paper 57468, University Library of Munich, Germany, revised 16 Jul 2014.

    More about this item

    Keywords

    Econometric models (Economic development); Environmental economics; Decision making (Public administration); Sustainable development;

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