Circular economy and trade in global value chains: innovative milieu approach

Damares Lopes Afonso

European Planning Studies, 2025, vol. 33, issue 10, 1671-1691

Abstract: The role of international trade in accelerating the transition to a Circular Economy (CE) is in the mainstream of the current literature; however, little is known about both CE trade within Global Value Chains (GVCs) and regional participation in this trade. The present article identifies regional features related to Domestic Value Added (DVA) growth within trade in the core CE sectors, in Italy, which is seen as advanced country in CE. This analysis encompasses both theoretical and empirical approaches. Theoretically, the article explains the factors capable of promoting CE at regional level and influencing its trade, including market, institutional and technological factors, which compose the innovative milieu in CE. In empirical terms, the analysis shows a positive impact of these factors on the growth of DVA in trade in the core CE sectors, unlike other sectors, where these effects are not observed. These factors should be taken into consideration by policymakers and stakeholders, altogether, to promote CE at regional level in Italy.

Date: 2025
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DOI: 10.1080/09654313.2025.2520890

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