THE IMPACT OF CIRCULAR ECONOMY FACTORS ON ECONOMIC GROWTH IN ASEAN COUNTRIES: AN APPROACH USING THE FGLS MODEL

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🔬研究者:Empirical evidence on circular economy factors and growth in ASEAN, with methodological application of FGLS.

🏢実務担当者:Insights for companies operating in ASEAN on how green investment and urbanization can drive sustainable growth.

🏛政策担当者:Policy recommendations for integrating circular economy principles into national development strategies and regional cooperation.

This study assesses the impact of circular economic factors on economic growth in six ASEAN countries during the 2010 - 2023 period, based on a publicly available database from official sources, the World Bank, UNCTAD, and IEA. According to the theoretical framework of the circular economy and green growth, the study emphasizes the role of resource optimization, green finance, reuse and recycling, and emission reduction in sustainable development. This study applies the feasible generalized least squares (FGLS) regression method to address heteroskedasticity, autocorrelation, and cross-sectional dependence, thereby providing more accurate estimates of the relationships among variables. The results indicate that green investment and urbanization have positive impacts on economic growth; these factors act as key drivers of sustainable economic growth. Renewable energy consumption and natural resource exploitation have negative effects on economic growth; these factors illustrate high initial investment costs, technological constraints, and uneven resource-use efficiency across ASEAN countries. Greenhouse gas emissions continue to exhibit a positive correlation with growth, implying that the region still remains in the early stage of the environmental Kuznets curve, where economic growth has yet to be free of environmental impacts. Based on these findings, the study proposes several policy implications. Firstly, green investment, particularly FDI linked to clean technology, should be further promoted. Secondly, the urban development planning should incorporate circular economy principles, which include smart city development, clean transportation, and circular waste management. Thirdly, the environmental institutional framework and governance capacity should be properly developed to facilitate the use of renewable energy and biomass technologies. Finally, regional cooperation should be enhanced for countries to share experiences, technologies, and develop a set of circular economy indicators integrated into national development strategies. These recommendations serve to foster green transition and sustainable growth in ASEAN countries.

• openaire https://doi.org/10.55643/fcaptp.6.65.2025.4940first seen 2026-05-14 21:50:07