Economics and management of national economy

Circular investments as a key to solving the growth dilemma

Economic Annals-XXI

Economic Annals-ХХI: Volume 188, Issue 3-4, Pages: 58-68

Citation information:
Kormishkina, L. A., Kormishkin, E. D., Gorin, V. A., & Koloskov, D. A. (2021). Circular investments as a key to solving the growth dilemma. Economic Annals-XXI, 188(3-4), 58-68. doi: https://doi.org/10.21003/ea.V188-07

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Ludmila Kormishkina
D.Sc. (Economics),
Professor, Head,
Department of Theoretical Economics and Economic Security,
Ogarev Mordovia State University
68 Bolshevistskaya Str., Saransk, Republic of Mordovia, 430005, Russian Federation
kormishkinala@mail.ru
ORCID ID: https://orcid.org/0000-0001-6009-3374

Evgenii Kormishkin
D.Sc. (Economics),
Associate Professor,
Professor of the Department of Theoretical Economics and Economic Security,
Ogarev Mordovia State University
68 Bolshevistskaya Str., Saransk, Republic of Mordovia, 430005, Russian Federation
edkormishkin@gmail.com
ORCID ID: https://orcid.org/0000-0002-7524-4072

Vladimir Gorin
PhD (Economics),
Associate Professor of the Department of Theoretical Economics and Economic Security,
Ogarev Mordovia State University
68 Bolshevistskaya Str., Saransk, Republic of Mordovia, 430005, Russian Federation
msugorin@mail.ru
ORCID ID: https://orcid.org/0000-0001-8385-1377

Dmitrii Koloskov
PhD (Economics),
Associate Professor of the Department of Theoretical Economics and Economic Security,
Ogarev Mordovia State University
68 Bolshevistskaya Str., Saransk, Republic of Mordovia, 430005, Russian Federation
kda1977@mail.ru
ORCID ID: https://orcid.org/0000-0003-2916-4626

Circular investments as a key to solving the growth dilemma

Abstract. The rationale for this study is based on the extreme importance of finding a solution to a complex growth dilemma arising from the negative effects of human activity and the limited ability of the ecosystem to regenerate and provide resources required by mankind to ensure sustainable development and the long-term prosperity. The research is aimed at proving a scientific hypothesis that states: when the global raw-materials crisis becomes increasingly noticeable in various countries of the world, including Russia, circular investments may become a driver for long-term economic growth and the launch of far-reaching reforms of the economy in the 21st century. Circular investments in this paper are viewed as a special type of real eco-investment that combines advancements in technology and innovations to ensure renewal and industrial-scale reproduction of resources (raw materials and energy) from industrial and household waste, along with the mitigation and/or elimination of negative effects, on the environment. A multiple linear regression model has been developed to confirm a statistically-relevant connection between circular investments and real GDP. As a methodological foundation for the model, we used the classic Cobb-Douglas production function modified to take into account industrially reproduced raw material resources included in the production process. Further, we have defined major limits for circular investments in Russia today and highlighted the primary measures which are to be taken to launch circular investments in order to find a solution to the complex growth dilemma.

Keywords: Growth Dilemma; Resources; Raw Materials; Crisis; Circular Investments; Waste Resources; Closed Resource Cycle

JEL Classifications: A00; N50; O15

Contribution: The authors contributed equally to this work.

Acknowledgments: This article was prepared with the financial support of the Russian Foundation for Basic Research (RFBR), project number 20-010-00060 «Developing the theory and methodology of environmental investments in the context of the «outcome» concept of the growth dilemma».

Data Availability Statement: The dataset is publicly available at the resources of the Federal State Statistics Service of Russia.

DOI: https://doi.org/10.21003/ea.V188-07

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Received 3.02.2021
Received in revised form 23.02.2021
Accepted 2.03.2021
Available online 10.05.2021

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