Circular economy international trade: An investigation of the relationship between european union circularity and international trade

Through increased international trade, circularity can be economically effective, motivating countries and industries to engage in circularity, which is urgently required to improve environmental outcomes. Therefore, this study empirically investigates whether higher national circularity can drive international trade in waste and scrap. This study builds on and tests previous theory on circular economy international trade using a large balanced panel dataset from all 27 European Union countries over 2011–2016. This study focuses on the factors—circular economy policy, circular research and innovation, or both—that influence countries' circular capabilities when trade is attractive. This study quantitatively explores drivers of circularity to facilitate the international trade of waste and scrap, including chemicals, metals, and plastics originating in the European Union, where circular material use rates are tracked. The findings reveal that circularity provides economic benefits through increased international trade. Additionally, policy and innovation factors increase a nation's circularity. This study builds on a growing research stream in circular economy international trade. • This study empirically investigates drivers of national circularity on waste trade. • The study employs large-scale quantitative analysis of EU data over several years. • Waste and scrap include chemicals, metals, and plastics originating in the EU. • Circularity provides economic benefits through increased international trade. • Empirical evidence reveals an export-magnification effect of offshoring.