nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2016‒02‒17
two papers chosen by
Karl Petrick
Western New England University

  1. A Review of the Circular Economy and its Implementation By Heshmati, Almas
  2. Crucial for Modern Sector Development? The Role of Exports and Institutions in Developing Countries By Grundmann, Rainer; Gries, Thomas

  1. By: Heshmati, Almas (Jönköping University, Sogang University)
    Abstract: Circular economy (CE) is a sustainable development strategy that is being proposed to tackle urgent problems of environmental degradation and resource scarcity. CE's 3R principles are to reduce, reuse and recycle materials. The principles account for a circular system where all materials are recycled, all energy is derived from renewables; activities support and rebuild the ecosystem and support human health and a healthy society and resources are used to generate value. This study is a review of the rapidly growing literature on CE covering its concept and current practices and assessing its implementation. The review also serves as an assessment of the design, implementation and effectiveness of CE related policies. It first presents the concept of CE and compares it with the current linear economy of taking materials, producing goods and disposing waste. It explains why it is imperative to move away from a linear economy towards regenerative sustainable industrial development with a closed loop. The paper then introduces current practices that have been introduced and discusses standards for the assessment of CE's development and performance. The main focus here is on providing a summary of the data analysis of key CE indicators to give a picture of CE practices. Third, based on an analysis of literature, the paper identifies the underlying problems and challenges to CE in an entrepreneurial perspective. Finally, the review provides a conclusion on CE's current development and gives policy suggestions for its future development as part of an entrepreneurial and innovative national level development strategy.
    Keywords: circular economy, environmental policy, national development strategy, sustainable development strategy, entrepreneurial strategy
    JEL: E01 F18 H23 O44 Q50 Q53 Q55 Q58 R11
    Date: 2015–12
  2. By: Grundmann, Rainer; Gries, Thomas
    Abstract: Over the past decades there has been ample evidence that a manufacturing sector plays an important role in overall development. In East Asia, recent job creation in industry has lifted large parts of the population to higher income levels. However, while this connection is well supported by anecdotal evidence as well as empirical and theoretical research, there is less evidence on what exactly supports modern sector development. With cross-country time-series data for 75 developing countries we analyze whether international trade and institutions, both the subject of much discus- sion in the general development debate, play a special role in manufacturing sector growth. Our estimation results, produced using an instrumental approach that is less susceptible to endogeneity issues, show that indeed both exports and institutions are vital for a manufacturing sector. Our results also provide interesting insights into the role of natural resources and official development aid.
    JEL: O14 C23 F15
    Date: 2015

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