Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

Yusuf, Hammed Agboola; Afolabi, Luqman; Shittu, Waliu Olawale; Kafilah, Gold; Muhammad, Murtala

doi:10.1177/0975087820987174

Cited by 17 publications

(10 citation statements)

References 56 publications

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“…To address the heteroskedasticity and the zero-trade issue literature has widely criticized the OLS, Fixed and Random effects model, and preferred PPML technique (Silva and Tenreyro, 2006;Braha et al, 2018;Brodzicki and Uminski, 2018;Correia et al, 2020;Yusuf et al, 2021;Santos Silva and Tenreyro, 2022). PPML has several advantages over other estimators and effectively addresses the common issue in trade analysis (Anderson and Yotov, 2016;Yotov et al, 2016). Hence, we rely on the results of estimates obtained from the PPML technique.…”

Section: Estimation Protocolmentioning

confidence: 99%

Does the China–Pakistan free trade agreement benefit the vegetable exports of Pakistan? A gravity estimation

Khan,

Chen,

2024

Front. Sustain. Food Syst.

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In the backdrop of criticism that the China-Pakistan Free Trade Agreement has disproportionately favored China, particularly in agricultural trade, there has been a surge in Pakistan’s imports, leading to a trade deficit. This study attempts to evaluate the impact of CPFTA 1&2 on the vegetable exports of Pakistan which is an important sector of the agricultural industry. A panel data set of Pakistan’s vegetable exports to its trading partners from 2003 to 2021 was analyzed with the extensively used gravity model of trade. The vegetable export data was sourced from the International Trade Centre (ITC) which is based on the Pakistan Bureau of Statistics. The results suggest that the China-Pakistan Free Trade Agreement (CPFTA-I) has a positive association with Pakistan’s vegetable exports to China. However, trade liberalization with Afghanistan, Sri Lanka, and Malaysia plays a more substantial role in driving Pakistan’s vegetable exports. CPFTA-II has not had a measurable or statistically significant impact on the vegetable exports of Pakistan as this period was highly influenced by COVID-19. The results of colonialism variables show that Pakistan is exporting more to countries with the same colonial history. Moreover, the results of the geographical variable suggest that Pakistan should explore more close markets to expand vegetable exports. Policy implications suggest the need to reduce trade costs, leverage CPEC infrastructure, enrich trade relations with neighboring countries, and involve business professionals in policy negotiations.

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Section: Estimation Protocolmentioning

confidence: 99%

Does the China–Pakistan free trade agreement benefit the vegetable exports of Pakistan? A gravity estimation

Khan,

Chen,

2024

Front. Sustain. Food Syst.

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“…Their findings revealed that the institutional quality is a significant factor in enhancing export while GDP of imported countries and weighted distance showed the positive and negative effects on exports, respectively, as depicted by gravity model. In a recent study, Yusuf, Afolabi, Shittu, Gold, and Muhammad (2021) analyzed the effect of governance indicators on bilateral trade flows between Malaysia and selected African OIC countries. Their empirical outcomes revealed that the poor institutional quality in African countries adversely affect the bilateral trade flows among OIC member countries in Africa.…”

Section: Institutional Quality and Trade Flowsmentioning

confidence: 99%

Exploring the trade facilitation role of Regional Trade Agreements (RTAs): A comparison of BRICS and the Next Eleven economies

Masood¹,

Hashmi²,

Aziz³

2023

NIJBM

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The present study assesses the trade facilitating role of regional trade agreements (RTAs) of BRICS and the Next Eleven (N-11) economies using annual bilateral trade over the period 2000–2019. For empirical estimation, we applied structural gravity with Poisson pseudo maximum likelihood estimator. The findings show higher effect of the RTAs for imports compared to exports for both BRICS and the N-11 countries. While the RTAs of BRICS countries mostly facilitate exports of metals, chemical products, plastic and rubber; the RTAs’ role is more pronounced for the exports of animal products, cereals, fruits, vegetable, in addition to labor intensive industries such as textile, footwear, and leather in the N-11 economies. Furthermore, the findings show that the adjustment in the exporting process in response the entry of an FTA is affected by the governance quality prevailing in the source country. In this context, Bangladesh, Egypt, Iran, Nigeria, and Pakistan particularly need to improve governance quality to spur their export performance.

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“…The study also observed a shift in the composition of trade from primary commodities to manufactured goods, suggesting a potential move towards greater economic diversification among OIC member countries. Yusuf et al (2021) investigated the correlation between trade flows among OIC member countries and the quality of institutions, specifically in Malaysia and other African OIC member nations. The study employed fixed and random effect models and utilized panel data from 2000-2018.…”

Section: Muslim Business Andmentioning

confidence: 99%

The Trade Development Among OIC Countries: Exploring Challenges, Opportunities, and the Impact of the Covid-19 Pandemic

Bhatti,

Ghouse

2023

MBER

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This paper investigates the factor determining the impact of trade development, challenges, and opportunities among various OIC countries. It studies the impact of socioeconomics, geo-political and cultural, factors using data between 2014 to 2022. The selected OIC countries from diverse regions, namely South and Southeast Asia, South America, Europe, Africa, and Central Asia. The study’s sample includes 50 countries out of a total of 57 OIC member nations. The paper employs a two-step GMM model to address endogeneity issues related to institutional variables. To account for the impact of the Covid-19 pandemic on trade, we have included a Covid-19 dummy variable in the model. Our results reveal that the Covid-19 dummy variable is significant in all models, indicating its significant impact on trade. Furthermore, most of the variables included in the study are found to be significant in all models. Overall, this study provides valuable insights into the factors that influence trade in OIC countries and the impact of the Covid-19 pandemic on trade.

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Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

Cited by 17 publications

References 56 publications

Does the China–Pakistan free trade agreement benefit the vegetable exports of Pakistan? A gravity estimation

Does the China–Pakistan free trade agreement benefit the vegetable exports of Pakistan? A gravity estimation

Exploring the trade facilitation role of Regional Trade Agreements (RTAs): A comparison of BRICS and the Next Eleven economies

The Trade Development Among OIC Countries: Exploring Challenges, Opportunities, and the Impact of the Covid-19 Pandemic

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