Circular Economy and Resource Efficiency in the Serbian Agri-Food Sector: Evidence from Dynamic Panel Analysis

Dragana Novaković, Tihomir Novaković, Dragan Milić, Mirela Tomaš Simin, Srboljub Nikolić, Milena Knežević, Maja Radišić (), Mladen Radišić and Dušan Pevac
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Dragana Novaković: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia
Tihomir Novaković: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia
Dragan Milić: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia
Mirela Tomaš Simin: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia
Srboljub Nikolić: Department of Social and Humanities Sciences, Military Academy, University of Defence in Belgrade, Veljka Lukića Kurjaka 33, 11042 Belgrade, Serbia
Milena Knežević: Department of Social and Humanities Sciences, Military Academy, University of Defence in Belgrade, Veljka Lukića Kurjaka 33, 11042 Belgrade, Serbia
Maja Radišić: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia
Mladen Radišić: Foodscale Hub, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia
Dušan Pevac: Foodscale Hub, Trg Dositeja Obradovića 8, 21000 Novi Sad, Serbia

Economies, 2025, vol. 13, issue 12, 1-24

Abstract: The transition toward sustainable, resource-efficient production has become a key challenge for agri-food systems, particularly in emerging economies, where profitability and environmental goals must be balanced. This study aimed to examine the relationship between financial structure, macroeconomic conditions, and circular economy (CE) indicators in determining the profitability of Serbian agri-food enterprises. Using panel data for 625 firms from 2014 to 2021, a two-step system GMM model was applied to control for endogeneity and firm-specific effects. The results indicate that in agriculture, moderate leverage enhances profitability, while excessive debt reduces it. Recycling and efficiency-oriented circular practices have a positive and significant effect on financial performance, suggesting that resource-efficient management supports long-term profitability. In the food industry, profitability shows strong persistence but remains mainly driven by internal and economic factors, with CE indicators exerting weaker short-term effects. Robustness tests confirm the validity and stability of the estimates. Overall, the findings highlight that integrating circular economy principles into business strategies can contribute to both financial sustainability and more efficient resource use in the agri-food sector.

Keywords: circular economy; agri-food sector; profitability; dynamic panel analysis; sustainable resource management (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:13:y:2025:i:12:p:346-:d:1804992

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