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

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

doi:10.1177/0975087820987174

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

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

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

Abstract

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

Original language	English
Pages (from-to)	177-191
Number of pages	15
Journal	Insight on Africa
Volume	13
Issue number	2
DOIs	https://doi.org/10.1177/0975087820987174
Publication status	Published - Jul 2021
Externally published	Yes

ASJC Scopus subject areas

Development
History
Political Science and International Relations

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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

abstract = "This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.",

author = "Yusuf, {Hammed Agboola} and Afolabi, {Luqman Olanrewaju} and Shittu, {Waliu Olawale} and Gold, {Kafilah Lola} and Murtala Muhammad",

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AU - Yusuf, Hammed Agboola

AU - Afolabi, Luqman Olanrewaju

AU - Shittu, Waliu Olawale

AU - Gold, Kafilah Lola

AU - Muhammad, Murtala

PY - 2021/7

Y1 - 2021/7

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AB - This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

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

Abstract

ASJC Scopus subject areas

UN SDGs

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