Title: Application model of green economic growth and economic gap

Authors: Evi Susanti Tasri; Syafruddin Karimi; Hefrizal Handra

Addresses: Department of Economics, University of Andalas, Kampus Limau Manis, Padang 25163, Indonesia ' Department of Economics, University of Andalas, Kampus Limau Manis, Padang 25163, Indonesia ' Department of Economics, University of Andalas, Kampus Limau Manis, Padang 25163, Indonesia

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.

Keywords: GDP; green GDP; gross domestic product; gap model; savings; population growth; technology adoption; age dependency ratio; gross fixed capital formation; GFCF; employment; green economics; economic growth models.

DOI: 10.1504/IJGE.2016.079724

International Journal of Green Economics, 2016 Vol.10 No.1, pp.51 - 68

Received: 28 Apr 2015
Accepted: 19 Aug 2016
Published online: 12 Oct 2016 *

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