H. Yusuf, Luqman Afolabi, W. Shittu, K. Gold, Murtala Muhammad
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Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa
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.
期刊介绍:
nsight on Africa is a biannual peer-reviewed academic journal covering contemporary African affairs and issues of policy relevance. It focuses on, though not confined to, foreign policies and developmental issues of African countries. The journal specially encourages article submission on issues related to emerging powers in Africa, BRICS in Africa and Afro-Asian relations. The journal is owned by African Studies Association of India (ASA India) located at Centre for African Studies, Jawaharlal Nehru University, New Delhi and its publication is managed by Policy Research Institute of African Studies Association (PRIASA) based in New Delhi.