International Trade in Waste in Sub-Saharan Africa: What Impact on Inclusive Growth?

The aim of this study is to analyse the integrated circular economy model in its international waste trade dimension and in a complex African regional context. At a time when a large body of literature has developed around the notion of international pollution havens, this study provides a framework for taking stock of waste trade and analysing the effects of this trade on growth and the environment in order to test the waste haven hypothesis. We use data on bilateral trade in waste and an index of environmental stringency for 30 African countries over the period 2000-2020. The data come from the World Bank's UNCOMTRADE (2022), WDI (2021) and UNEP (2021). Using a simultaneous equation model, we obtain 3 main results: (i) the determinants of waste imports in SSA are linked to the coupled weakness of incomes and environmental regulation; (ii) waste trade flows reflect a form of circular economy due to the positive impact on per capita income, however, the effect remains marginal, indicating the relatively low integration of SSA countries in this trade; (iii) environmental policies must be strengthened in conjunction with anti-corruption policies to hope for positive effects of waste trade on growth.