Determinants of Foreign Direct Investment in Organization of Islamic Cooperation (OIC) Countries’ Economy

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

This study aims to examine and analyze the effect of macroeconomic variables on the Human Development Index (HDI) in the Organisation of Islamic Cooperation (OIC) countries with political stability as the moderating variable. The GMM (Generalized Method Moment) dynamic panel and the MRA (Moderated Regression Analysis) will be used for determining the type of moderation needed as analysis techniques. In the first section, the findings state that inflation and unemployment have no effect on HDI, This is due to the fact that inflation and unemployment are very dependent on global economic fluctuation. Meanwhile, trade openness has a significant positive effect on HDI and foreign direct investment has a significant negative effect on HDI. This can add to the evidence that a high level of trade openness can support HDI values in OIC countries. Trade Openness can strengthen the economy, education, and health simultaneously by increasing prosperity through increased demand, supply, and services in numerous sectors. Secondly, the value of the moderator variable (political stability) on the relationship between unemployment and HDI demonstrates that political stability acts as a "Quasi Moderator" which means that political instability can exacerbate the negative influence of unemployment on HDI in OIC countries. This research has implications for the importance of cooperation between OIC countries in various fields, especially in increasing trade, investment, job creation and good governance to support the expansion of human development in OIC nations and to build sustainable prosperity.

This study seeks to explore and investigate the influence of foreign direct investment, remittances, and trade openness on economic growth in the Organization of Islamic Cooperation with governance index as a moderating variable in 2005-2019. Moderated Regression Analysis analysis is used to analyze governance index variables. The use of Generalized Least Square and Generalized Method of Moments is used to determine which method is best. Sargant level of significance and value showed GMM more precisely in this study. The results of statistical testing show that all independent variables have a significant positive influence on economic growth except foreign direct investment which has a significant negative influence. This negative influence is due to the instability of investment flows. In addition, governance index can moderate foreign direct investment, remittances, and trade openness in its influence on economic growth.Thus, it can be concluded that to increase economic growth, the need for good governance index so that economic growth in the Organization of Islamic Cooperation is increasing.

Economic growth is a key indicator in assessing a country's ability to sustainably increase the output of goods and services. This study aims to analyze the effect of trade openness (TO) and the interaction between foreign direct investment (FDI) and political stability (PS) on economic growth in member countries of the Organization of Islamic Cooperation (OIC). The study utilizes panel data from 30 OIC member countries over the period 2005–2023, sourced from the World Bank’s World Development Indicators (WDI). The analytical method employed is panel data regression using the Fixed Effect Model (FEM) to control for individual heterogeneity across countries, as well as Moderated Regression Analysis (MRA) to test the moderating role of PS in the relationship between FDI and economic growth. The estimation results show that both TO and FDI have a positive and significant impact on economic growth. However, the interaction between FDI and PS exhibits a negative and significant effect, which contradicts conventional theoretical expectations that political stability should enhance the positive impact of FDI. These findings suggest that in several OIC countries, despite relatively low political stability, FDI continues to flow in response to economic opportunities, strategic interests, or domestic market appeal. In other words, political instability does not always serve as a major barrier to foreign investment, especially when the economic potential remains high. Moreover, FDI under such conditions may serve as an important instrument to strengthen international economic cooperation, expand production capacity, and drive long-term economic growth. These findings provide strategic implications for the formulation of investment and institutional stability policies in OIC countries.

How do trade openness, public expenditure and institutional performance affect unemployment in OIC countries? Evidence from the DCCE approach

This study aims to determine the effect of economic growth, foreign direct investment, and trade openness on energy consumption in the Organization of Islamic Cooperation – OIC countries from 2004 until 2014 simultaneously and partially. The study uses a qualitative method and employs panel data regression to analyze. The sample is taken by applying a purposive sampling technique and obtained 38 OIC countries. The empirical result shows that economic growth, foreign direct investment, and trade openness are simultaneously significant affecting energy consumption. Partially, economic growth and foreign direct investment have positive and significant effect on energy consumption while trade openness have negative and not significant effect on energy consumption.Keywords: Energy consumption, economic growth, trade openness, OIC countriesREFFERENCESAnto, M.B. Hendrie. 2003. Pengantar ekonomika Mikro Islami. Yogyakarta: Ekonisia.Antonio, Muhammad Syafi’i. 2001. Bank Syari’ah dari Teori ke Praktik. Jakarta: Gema Insani.Biro Pusat Statistik (BPS). 2008. Perkembangan Nilai Tukar Petani dan Harga Produsen Gabah, (online), (www.bps.go.id/getfile.php?news=319) diakses 17 Agustus 2017Burhansyah, Rusli dan Melia P. 2010.Kinerja Usaha Tani Padi dan Indikator Kesejahteraan Petani di Kubu Raya Kalimantan Barat, (Online), (www.pse.litbang.deptan.go.id)/ind/pdffiles/Pros_MP_15_2010.pdf) diakses 17 Agustus 2017Ghazaly, Abdul Rahman, dkk. 2010. Fiqh Muamalat. Jakarta: Prenada Media Group.Haroen, Nasrun. 2007. Fiqh Muamalah. Jakarta: Gaya Media PratamaHasan, M. Ali. 20004. Berbagai Macam Transaksi dalam Islam (Fiqh Muamalat). Jakarta: PT. Raja Grafindo Persada.Heryawan, Ahmad. 2009. “Kesejahteraan dan Ukurannya”. (Online). (http://ahmadheryawan.blogspot.co.id/kesejahteraan-dan-ukurannya). Diakses pada 3 februari 2017.Munawir, Ahmad Warson. 1997. Kamus Indonesia-Arab-Inggris. Surabaya: Pustaka ProgresifNasikun. 1993. Sistem Sosial Indonesia. Jakarta: Raja Grafindo PersadaPusat Pengkajian dan Pengembangan Ekonomi Islam (P3EI). 2008. Ekonomi Islam. Jakarta: PT. Raja Grafindo Persada.Setiawan, Iwan. 2008. Alternatif Pemberdayaan Bagi Peningkatan Kesejahteraan Petani Lahan Kering (Studi Literatur Petani Jagung di Jawa Barat). Skripsi tidak diterbitkan. Bandung. Fakultas Pertanian Universitas Padjajaran.Sugiyono. 2010. Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.Syamsuddien, Darsyaf Ibnu. 1994. Darussalam: Prototype Negeri Yang Damai. Surabaya: Media Idaman Press.Yin, Robert K. 2009.Case Study Research Design and Methods.Fourth Edition. California: sage inc.

This conceptual paper investigates into the complicated landscape of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) countries. Given the diverse economic, political, and social fabric of the OIC member states, FDI inflows exhibit substantial variability across these countries. We start by exposing the factors influencing FDI, ranging from macro-economic and market size, regulatory frameworks to political stability and diplomatic relations. Despite the promise held by these nations, several challenges persist. These include, but are not limited to, political unpredictability, infrastructural deficits, and sometimes, restrictive regulatory landscapes. Recognizing these barriers, the study proposes forward-looking strategies for OIC countries. Besides of barriers, some success stories were highlighted as an example of good practices. Digesting the barrier and good practices, some strategies were suggested to boost the FDI inflows into the region. Emphasis is placed on enhancing institutional quality, fostering a conducive business environment, leveraging technological advancements, and amplifying intra-OIC collaborations. The paper concludes with highlights for policy maker and investors the potential of OIC countries to attract more significant FDI by harmonizing their policies and collectively positioning themselves in the global market, while also respecting their unique cultural and socio-political contexts.

Comprising 57 member states, the Organization for Islamic Cooperation (OIC) is the second largest intergovernmental organization in the world after the United Nations. Its membership extends from Southeast Asia, South Asia and the Middle East to Africa, Eurasia, the Balkans and South America.In 2005, OIC launched a reform program that culminated in adopting a revised Charter in 2008 replacing the Charter of 1972. The new Charter seemed to reflect an increased prominence for human rights within the OIC, and it paved the way for the establishment of the OIC’s Independent Permanent Human Rights Commission (IPHRC). In addition to the stipulation that IPHRC will be one of the eleven primary organs of the OIC, the new Charter expresses the OIC’s determination to “promote human rights and fundamental freedoms, good governance, rule of law, democracy and accountability”, and “safeguard and promote the rights of women and their participation in all spheres of life” in member States in accordance with domestic legislation. In addition to these transformations, OIC appear to be more willing to engage with civil society organizations on human rights. It is in this context, and the increasing need to understand the OIC, particularly its human rights mechanisms and discourse, this paper tries to have a general analysis on subject.It should be noted that for some researchers (Mayer.2015) the OIC’s record is shown to be full of confusing and even self-contradictory statements on Islam and human rights. For them, OIC is not a competent organization for promoting the Human Rights as a universal value.As our major question, the paper seeks to evaluate the index growth of human rights and their criteria in OIC. Which are the main instruments for protection of Human Rights in OIC? Has OIC been successful in promotion of Human rights in the Member States and in the world?To carry out the research, a descriptive and analytical method is selected and based on OIC documents, it will be a documented analysis.

This study analyzes the asymmetric association between trade openness and economic growth in 20 highly open Organization of Islamic Cooperation (OIC) countries. A novel technique, quantile-on-quantile (QQ), is applied by using the data for the period 1991–2018. The results consider the mode of how quantiles of trade openness asymmetrically affect the quantiles of economic growth by giving an appropriate framework to apprehend the overall dependence structure. A positive linkage between trade openness and economic growth is found in United Arab Emirates, Malaysia, Suriname, Kuwait, Mauritania, Turkey, Tunisia, Qatar, Brunei, Morocco, Sierra Leone, Bahrain, Libya, Oman, Saudi Arabia and Albania. However, there is a negative association between trade openness and economic growth in Guinea, Guyana and Mozambique. Hence 16 out of 20 OIC countries support the trade-led growth hypothesis. These outcomes intimate that the intensity of asymmetric association in openness-growth nexus varies with countries that require individual attention and caution for governments in postulating the policies related to trade and growth.

This article draws on women’s rights and sexual orientation and gender identity (SOGI) to explore how the Organization of Islamic Cooperation (OIC) represents, interprets and seeks to impact the right to equality and protection against discrimination as enshrined under international human rights law. The study is a novel one inasmuch as the OIC is neither a state nor a religious group per se. Rather, the OIC stands out as the only contemporary intergovernmental organization unifying its member states around the commonality of a single religion. In this capacity, the organization maintains no direct obligations or rights under key instruments such as the Universal Declaration on Human Rights (UDHR) or the International Covenant on Civil and Political Rights (ICCPR). Nevertheless, as part of its mandate representing 57 predominantly Muslim states, the OIC has increasingly asserted a role for itself on the world stage as “the collective voice of the Muslim world.” This new assertiveness is particularly evident in the context of debates surrounding the content of human rights norms in international fora such as the United Nations, where the OIC has sought to develop common policy positions and encourage its members to vote as a bloc on issues of concern. Against this backdrop, the article concludes supporters of universal human rights norms need to better understand how the OIC’s mission to “protect and defend the true image of Islam” may impact international debates over the substance of equality and nondiscrimination norms, and develop appropriate responses to these efforts as a means for ensuring universality is not undermined.The paper begins with a brief introduction to the OIC, and proceeds to explore its relationship with the principles of equality and nondiscrimination by examining its founding document and other relevant primary sources. With this understanding in place, subsequent sections examine the OIC’s contemporary understanding of these principles as manifested in rights debates surrounding women and Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) individuals and related SOGI issues. Throughout this examination, the role of the OIC’s newly established Independent Permanent Human Rights Commission (IPHRC) is considered as a means of appraising whether a shift in the OIC’s position may be forthcoming. The paper concludes with several recommendations for concerned policymakers and human rights activists.

The study examines the impact of sustainable energy production on the sustainable development of Organization of Islamic Cooperation (OIC) countries from 1990 to 2020. Focusing on integrating sustainability concepts into economic and Islamic law realms, the paper investigates directional relationships among key variables, analyzing their effects on sustainable energy consumption, renewable energy, and overall sustainable development. Robust associations are identified between energy consumption (non-renewable and renewable), economic growth, gross domestic product, trade openness, greenhouse gas emissions, and foreign direct investment. Employing the panel ARDL model for OIC countries and subgroups, the findings reveal a positive and significant impact of sustainable energy consumption on sustainable development indicators. Despite positive outcomes, challenges persist, particularly in economic diversity among studied countries, with high-income nations, primarily oil producers, struggling to address environmental concerns. Low-income countries face hurdles in achieving balanced progress toward sustainable development, as indicated by the analysis.

The Organization of Islamic Cooperation (OIC) is the second biggest international organization after the United Nations. It comprises fifty-seven full member states, representing one-quarter of the global population, and it is the only international organization whose unifying feature is its religious and Islamic identity. As such, it represents an anomaly in international relations and largely explains why the organization has not figured in the majority of mainstream publications on international law until relatively recently. Established in the wake of universal Muslim outrage following the burning of the Al-Aqsa Mosque in 1969, the OIC has provided a political platform for predominantly Muslim states to promote “Islamic solidarity.” But it has also provided a forum to develop consensual positions on many international matters—from international trade and the development of Islamic banking and halal food networks to peace and security, hate speech, and the protection of Muslim minorities. The OIC now forms a considerable bloc of countries at the UN and, with the presence of both Russia and China as observers, it has capacity to wield considerable influence on the world stage and to co-sponsor common agendas. For much of its existence, however, the OIC has been a peripheral grouping and a marginal player. Although it has forty-eight subsidiary and specialized organs, the organization itself is often dismissed as a talking shop and is without any enforcement legal machinery. No committee is endowed with powers to mirror the UN’s Security Council nor has the OIC established any legal body to issue binding legal rulings on member states. The International Islamic Court of Justice, the intended Islamic World Court, seated in Jerusalem, has never operated and even its statute is yet to be ratified by the required two-thirds of OIC members. In spite of its known weaknesses and historical failures, under the leadership of its current and previous secretary-general, the OIC has sprung to life. Since arming itself with a new “fit for purpose” Charter in 2008, the OIC has shown a greater willingness to engage in key areas of international law, including humanitarian law, peace-making, human rights, international terrorism, and, more recently, environmental protection and climate change. If concerns were formerly expressed at the OIC’s apparent ambivalence toward international law, the recent case brought against the government of Myanmar for committing genocide against the Rohingyas by the Gambia in the International Court of Justice (ICJ), with the full backing of the OIC, and the ICJ order in January 2020 against Myanmar for preliminary relief provides evidence of increasing engagement with international law and of success when doing so.

PurposeThis study examines the impact of trade openness, human capital, public expenditure and institutional performance on unemployment in various income groups of Organization of Islamic Cooperation (OIC) countries.Design/methodology/approachTraditional panel data methodologies neglect the issue of cross-sectional dependence and provide ambiguous outcomes. A novel approach, “dynamic common correlated effects (DCCE)”, is utilized in this study to tackle with aforementioned issue. Pooled mean group (PMG) estimation is also applied to verify the robustness of the findings.FindingsThe long-run estimates show that trade openness has a significant and negative relationship with the unemployment rate in overall and lower-income OIC economies and a positive correlation with unemployment in higher-income OIC countries. Public expenditure is negatively and significantly correlated with unemployment in higher-income and overall OIC economies. Moreover, human capital reduces unemployment in higher-income and overall OIC countries while increases unemployment in lower-income OIC economies.Practical implicationsThe research tends to endorse the argument for continuous trade openness policy along with efficient use of public expenditure and improved institutional performance to reduce unemployment in OIC countries.Originality/valueThe DCCE approach in this research considers heterogeneity and cross-sectional dependence between cross-sectional units and thus gives robust outcomes.

How do rising levels of international interconnectedness affect social, economic and political conditions for women? Research on gender and international relations frequently offers clear propositions but seldom submits them to broad, quantitative testing. This chapter attempts to fill that gap. We attempt to answer the question: Do increasing cross-national exchange and communication lead to improvements in the status and equality of women in the Organisation of Islamic Cooperation (OIC) countries? We have measured women empowerment with the economic, political and social rights of women. The empirical analysis is based on Order Logit model. The results show that globalization in the form of trade improves the economic, political and social rights of women while in the form of foreign direct investment (FDI) its favorable impact is limited to only political rights of women.

Background and objectivesThe 57 countries of the Organisation of Islamic Cooperation (OIC) are experiencing rapid increases in their burden of cancer. The First Ladies Against Cancer meeting at the 2016 OIC meeting in Istanbul committed to the importance of cancer control and the need for more evidence to support national cancer control planning (NCCP). Strong research systems are a crucial aspect of NCCP, but few data exist to support policy-makers across this political groupingMethodologyWe identified all cancer research papers from OIC countries in the Web of Science from 2008 to 2017 with a filter based on journal names and title words, with high precision and recall. We analysed the country outputs, the cancer sites investigated, the types of research, sources of funding and the citations to the papers.ResultsThere were 49,712 cancer research papers over this period. The leading countries in terms of output were Turkey, Iran, Egypt and Malaysia, but the most cited papers were from Qatar, Indonesia and Saudi Arabia. International collaboration was low, except in Qatar and the United Arab Emirates. The site-specific cancers accounting for most research were breast and blood, correlating with their disease burden in the OIC countries, but lung, cervical and oesophageal cancers were relatively under-researched. Most funding from within the OIC countries was from their own university sector.ConclusionCancer is seriously under-researched in most of the OIC countries. This will undermine the ability of these countries and OIC as a whole to deliver on better cancer control for their populations. New policies, OIC leadership and funding are urgently needed to address this situation.