The transition towards a circular economy in developing countries : a firm-level perspective

• Main Author: Rishanty, Arnita
• Format: Dissertation
• Language: English
• Published: University of Liverpool 2021
• DOI: 10.17638/03142969

This thesis is one of several efforts that have been put into tackling the environmental risks amid pressurising economic demand that never rests. Aiming to answer the main research question of: "How do firms in developing countries make a transition towards Circular Economy?", this thesis adopts an exploratory mixed-method approach, comprising four studies. The four studies are systematic literature review, qualitative study, quantitative game theory modelling and quantitative empirical study. The total four studies are delivered to address well-rounded understandings on the transition towards circular economy for firms in developing countries, qualitatively, conceptually and to verify empirically on firms' productivity. The findings of this thesis provide guidance for firms making the transition towards circular economy, and for the government supporting the transition. The vital role of government in supporting the circular economy as a new approach for sustainable growth is also raised. The need for trust, social capital to form circular economy cooperation/ecosystem is validated. The deduction that circular economy adoption brings benefits of varying magnitudes to each agent and no one loses, and that the circularity positively affects the firms' productivity but with different magnitude of effects across sectors are justified. This thesis also indicates that circular economy firms theoretically are more resilient to global shocks, and a circular economy could be a new model for resilient and sustainable economic growth by rerouting the industries business models into circular business models. This thesis as well underlines the open paradigm of circular economy that is non-restrictive and adaptable to the social and ecological environment depending on the availability of resources (low-tech to high-tech) and markets (small to large), making circular economy approach, theoretically, is effective to improve productivity sustainably with limited resources available as in developing economies. This makes circular economy may provide a gateway for developing countries to make the leap towards a green and sustainable economic growth.