The Determinants of Exports between Malaysia and the OIC Member Countries: A Gravity Model Approach

Abidin, Irwan Shah Zainal; Bakar, Nor Aznin Abu; Sahlan, Rizaudin

doi:10.1016/s2212-5671(13)00004-x

Cited by 44 publications

(35 citation statements)

References 5 publications

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“…However, Abidin, Bakar, & Sahlan, (2013) and Gundogdu (2009) endeavored to reveal what determined intra-OIC imports increased 14.4 to 17.6 % 2002 and 2006, by analyzing tariff, trade facilitation and liberalization & depreciation of exchange rate, his findings highlighted that OIC member countries started trade each other and the rest of the world following Makkah declaration and ten-year program of action to increase intra-OIC trade 20 percent of global trade in 2015. Although trade liberalization implemented by OIC member countries improved GDP per capita growth in the short term, but it did not improve imports, exports and total trade of the members (Ghani, 2011) The export of Malaysia to OIC countries is positively associated with GDP and negatively proportional to GDP per capita and real exchange rate (Abidin et al, 2013). This is also consistent with the result of cross-sectional analysis of intra-OIC trade conducted by Bendjilali (2000).…”

Section: Theoretical Frame Worksupporting

confidence: 69%

Examining Determinants of Turkey Export to OIC Member Countries

2019

JSTR

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Using the traditional gravity model, this paper aims to analyze the determinants of Turkish exports to 41 OIC (Organization of Islamic cooperation) countries for the period from 2000 to 2017. Specifically, the paper analyzed the historical links, humanitarian diplomacy, economic diplomacy, trade costs and economic sizes as the main explanatory factors of the export of Turkey to Islamic countries. After implementing various robustness checks, results indicate that the economic size of OIC member countries and Turkish official development assistance have statistically significant effect on Turkish volume of export to OIC, however the GDP of Turkey was negative but not significant, which is contrary to the general assumption of Gravity model. The other factors such as common language, trade agreements, and Turkish business consulates are also found positive impacts on export of Turkey to OIC but not statistically significant.

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Section: Theoretical Frame Worksupporting

confidence: 69%

Examining Determinants of Turkey Export to OIC Member Countries

2019

JSTR

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“…According to Abidin,Bakar and Sahlan (2013), the determinant of exports can be analyzed by using gravity model. High inflation in one's country will have negative impact on export activities.…”

Section: Materials Studiedmentioning

confidence: 99%

Determinants of Export: Empirical Study in Malaysia

Lee¹,

Har²,

Zhengyi³

et al. 2016

JIBE

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This research aims to study the relationship of export with four determinants, namely import, inflation, foreign direct investment (FDI), and exchange rate. Sample years are 1975 to 2013. Ordinary least square (OLS) is used. Results revealed that import has positive relationship with export. This implied that Malaysia import may be an "assembly point exporter". Electric and electrical (E&E), which is Malaysia major export component has high possibly where inputs are imported, then assembly and exported. Foreign exchange rate (domestic currency in term of foreign) has positive relationship with export, thus validating Marshall Learner hypothesis. Inflation has negative relationship as higher aggregate price increase cost of production and decreasing price competitiveness of export. Foreign direct investment has an inverted-U curve relationship, which give further insight into conflicting evidence of linear relationship between export and FDI. Facilities provided to promote export may attract inflow of foreign investment. However, if FDI is targeted to produce for domestic market, it may not contribute to export growth.

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“…Therefore the expected sign of β 4 will be positive. The expected sign of β 5 is expected to be negative, where a long distance between trading partners implies higher costs and lower profit margins for importers [32].…”

Section: The Generalized Gravity Model Of Egypt's Exportsmentioning

confidence: 99%

The Factors Affecting Egypt’s Exports: Evidence from the Gravity Model Analysis

Elshehawy¹,

Shen²,

Ahmed³

2014

JSS

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This paper investigates the factors that affect Egypt's bilateral export flows to its main trading partners. Based on the panel data, the gravity model approach has been used to estimate Egypt's exports through annual data covering the period 2000 to 2013 for 42 main trading partners. The gravity model in its fixed effects panel data explained 84 percent of the fluctuations in Egypt's exports. The results show that Egypt's GDP, importer's GDP, importer's population, regional trade agreements (RTA) and the border between Egypt and its trading partner are the main factors affecting Egypt's exports to its main trading partners. All these factors affect Egypt's exports positively. Transportation costs (distance variable) are found to have negative but insignificant effect on Egypt's exports. All these results can help the government and policy makers to undertake appropriate measures to improve the performance of the Egyptian foreign trade sector.

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The Determinants of Exports between Malaysia and the OIC Member Countries: A Gravity Model Approach

Cited by 44 publications

References 5 publications

Examining Determinants of Turkey Export to OIC Member Countries

Examining Determinants of Turkey Export to OIC Member Countries

Determinants of Export: Empirical Study in Malaysia

The Factors Affecting Egypt’s Exports: Evidence from the Gravity Model Analysis

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