Circular Economy in European Countries: The Required Link for Green Foreign Financing Investment Policy

Le Thanh Ha ()
Additional contact information
Le Thanh Ha: National Economics University

Circular Economy and Sustainability, 2025, vol. 5, issue 3, 1727-1756

Abstract: Abstract Green foreign financing policy (GFFP) is a critical factor in accelerating the shift to a resource-saving society and promoting the long-term growth of the national economy on the path toward the circular economy (CE). This paper attempts to investigate the experimental influences of GFFP on CE. We are employing various econometric techniques in a worldwide sample between 2014 and 2022. The estimated results show that the extent of GFFP has a significant effect on promoting the circular economy. We found strong results using different econometric techniques and including more explanatory variables. To clarify the relationship between GFFP and variables, we show the short- and long-term impacts of GFFP on the circular economy and compare GFFP with it. The results show that CE relationships are more likely to persist for long periods. Notably, we also found significant and consistent effects of GFFP on four alternative measures of CE, including related patent numbers (CE_PA), use of circulating materials (CE_MA), waste recycling (CE_RW), and biowaste recycling (CE_RB).

Keywords: Green FDI; Circular economy; Global instability; Global template (search for similar items in EconPapers)
JEL-codes: C33 F21 G21 O16 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43615-024-00494-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:circec:v:5:y:2025:i:3:d:10.1007_s43615-024-00494-z

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43615

DOI: 10.1007/s43615-024-00494-z

Access Statistics for this article

More articles in Circular Economy and Sustainability from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().