Waste management and competitiveness of firms in Europe: A stochastic frontier approach

The present paper aims to investigate the relationship between achieved recycling rates and the competitiveness of firms working in circular economy sectors. The econometric analysis is based on the Stochastic Frontier Analysis (a parametric model) and is carried out in reference to seventeen European countries over the years 2010–2016. It reveals intriguing results about the positive effect that achieved recycling rates of packaging, electronic and bio-waste can exert on the competitiveness of firms, although differences emerge across the countries considered. Furthermore, through the inefficiency function, a positive effect of R&D spending on competitiveness of European firms is disclosed