Influence of Employment and Investment in Circular Economy on the Economic Growth of EU Countries: A Dynamic panel Data Regression Approach (2008-2024)
DOI:
https://doi.org/10.54741/SSJAR/6.2.2026.343Keywords:
circular economy, economic growth, employment, investment and dynamic panelAbstract
It is widely recognised that the circular economy has gained substantial traction across countries due to its strong potential to promote sustainable development. By minimizing waste and pollution, reducing reliance on raw materials, generating employment opportunities, and safeguarding the environment, this model offers a comprehensive approach to economic growth. Unlike the traditional linear economic framework, which follows a “take–make–dispose” pattern, the circular economy emphasizes value retention and regeneration, thereby enhancing long-term growth prospects for nations.
In this study, we consider all countries within the European Union and utilize data at constant prices covering the period from 2008 to 2024. The empirical findings indicate that investment in the circular economy exerts a positive and highly significant impact on gross value added (GVA). Labour also demonstrates a positive influence on GVA, although its level of significance is comparatively moderate. Furthermore, when examining the growth of GVA derived from circular economy activities, investment continues to show a strong positive and statistically significant effect.
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Copyright (c) 2026 Surajit Sengupta, Subir Das, Shreyasi Chatterjee
This work is licensed under a Creative Commons Attribution 4.0 International License.
Research Articles in 'Social Science Journal for Advanced Research' are Open Access articles published under the Creative Commons CC BY License Creative Commons Attribution 4.0 International License http://creativecommons.org/licenses/by/4.0/. This license allows you to share – copy and redistribute the material in any medium or format. Adapt – remix, transform, and build upon the material for any purpose, even commercially.
