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Intra OIC-region trade: application of gravity model
Author
Source
Journal of Islamic Business and Management
Issue
Vol. 11, Issue 2 (31 Dec. 2021), pp.250-266, 17 p.
Publisher
Riphah International University Riphah Centre of Islamic Business
Publication Date
2021-12-31
Country of Publication
Pakistan
No. of Pages
17
Main Subjects
Engineering & Technology Sciences (Multidisciplinary)
Abstract EN
Purpose: This study analyses the international trade among members of the Organisation of Islamic Cooperation (OIC) and documents the significant contributing factors.
Methodology: Our sample includes 49 OIC-members (located from Southeast Asia to South America).
The extended gravity model of inter- national trade is applied to identify the determinants of intra-OIC region trade on the recent five years data (2014-18), at the time research con- ducted.
Exports are used as proxy for the international trade between a pair of trading partners.
Findings: Evidence supports the application of the basic gravity model in explaining trade variations within the OIC region.
GDP contributes positively while distancing negatively.
Common language contributes positively to trade flows.
Shared borders and Inflation (importer and ex- porter) turned insignificant.
Trade volume among OIC member countries is less than potential.
Recommendations: OIC economies need to focus on growth through the production of value-added commodities-leading to an increase in international trade.
Furthermore, surplus capital within the region may be shifted to economies with scarce capital.
Significance: To the best of author’s knowledge, this is the only effort to present a comprehensive analysis of international trade within the OIC- region through the application of the gravity model in recent years.
KAUJIE Classification: U0, U3 JEL Classification: F10, F14
American Psychological Association (APA)
Hanif, Muhammad. 2021. Intra OIC-region trade: application of gravity model. Journal of Islamic Business and Management،Vol. 11, no. 2, pp.250-266.
https://search.emarefa.net/detail/BIM-1429430
Modern Language Association (MLA)
Hanif, Muhammad. Intra OIC-region trade: application of gravity model. Journal of Islamic Business and Management Vol. 11, no. 2 (2021), pp.250-266.
https://search.emarefa.net/detail/BIM-1429430
American Medical Association (AMA)
Hanif, Muhammad. Intra OIC-region trade: application of gravity model. Journal of Islamic Business and Management. 2021. Vol. 11, no. 2, pp.250-266.
https://search.emarefa.net/detail/BIM-1429430
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 264-266
Record ID
BIM-1429430