Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317553 
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 23 [Issue:] 1 [Year:] 2022 [Pages:] 199-217
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Sustainable economic growth is desired to be achieved by governments targeting economic, social, and environmental benefits. The idea of circular economy model is to consider feedback effects from proper waste management instead of one-way effects typical with the classical linear model. Several sectors of society contribute to circular economy and its monetary and environmental outputs in a sustainable way. The aim of this paper is to analyze the dependencies and causalities of circular economy and economic developments in the EU. The research objectives include testing (i) whether research and development (R&D) expenditure, GDP per capita and generation of municipal waste per capita influence the recycling rate of municipal waste, and (ii) whether R&D expenditure, generation of municipal waste per capita and the recycling rate of municipal waste influence the GDP per capita. The relevant indicators are obtained from Eurostat. The research methods of fixed effects and Tobit approach are used to study the statistical relevance of the two models. The pairwise causality of variables is tested by Dumitrescu-Hurlin causality test. One result of the study is that technology development, by a decreasing life of products, leads to an increase of waste generation. Therefore, environmentally friendly technologies should be produced.
Subjects: 
circular economy
economic development
competitiveness
fixed effects model
Tobit model
Granger causality
JEL: 
C51
O11
Q56
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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