Determinants of transforming to a circular economy: Evidence from a developing country

The transformation to a circular economy is considered an optimal solution for achieving sustainable development. Utilizing panel data from 63 provinces in Vietnam spanning 2016 to 2020, this study explores the motives and obstacles in the transition to a circular economy at the provincial level. The empirical results show that income per capita, education level, and population density are the primary drivers, while multi-dimensional poverty rate and the age of working population hamper the transitional process in the provinces. In addition, there is no empirical evidence to conclude the positive impacts of environmental regulations and information and communications technologies on transforming to a circular economy in Vietnamese provinces. By classifying provinces into six economic regions, we find heterogeneous effects among these regions. Based on the findings, our research proposes several implications for accelerating the transition to a circular economy, thereby contributing to sustainable development.