Waste Recycling And Sustainable Economic Growth: Challenges Of The Circular Economy In Developing Countries

Abstract

The aim of this paper is to analyze the impact of circular economy practices specifically the recycling of plastics, paper, and metals as well as infrastructure investment on economic growth in Kosovo.
The study is grounded in circular economy theory, emphasizing waste reduction, environmental and material efficiency, and the integration of sustainable development principles.The paper adopts a quantitative research design with use of secondary data from the Kosovo Agency of Statistics and EU-funded projects. A linear regression analysis model was used to analyze how recycling rates and recycling infrastructure investments were impacting real Gross Domestic Product (GDP) per capita. Another application of the Performance Index (PI) was the comparison of the performance of individual recycling industries.Statistical findings confirm that recycling paper products, combined with plastic and metals, yields beneficial effects on economic growth. Infrastructure investment did not have any detectable effect, though. The study findings, based on the PI, indicate relatively low recycling performance across all three sectors, suggesting that significant opportunities for improvement remain unexploited.Policy and stakeholder coordination must be strengthened to enhance recycling performance and facilitate circular economy advancement, according to the findings. The research outcomes inform waste management strategy, environmental policy, and economic planning.

The study adds to scarce existing research on circular economy practices in developing nations by exploring practices in Kosovo. The article provides working knowledge, besides empirical evidence, of the benefits of specific recycling programs for sustainable economic development.