Organization Of Islamic Cooperation Member Countries Research Articles

Probing the Nexus Effect of CO2 Emissions, Fossil Fuels, Energy Imports and Economic Growth on Renewable Energy Consumption in OIC Member Countries in Southeast Asia: Evidence from Panel Data Estimations

In recent years, the role of renewable energy sources has increased in the amount of energy consumed worldwide. Much remains unknown about the components that influence renewable energy consumption. This article addresses this issue for the Southeast Asian countries that are members of the Organization of Islamic Cooperation (OIC): Indonesia, Malaysia and Brunei Darussalam. Besides having major energy resources, the region is well suited for renewable energy development as it can measure the effects of carbon dioxide emissions, fossil fuels, energy imports, and economic growth. In this study, we found that there is no statistically significant difference in renewable energy consumption in previous years; economic growth and concurrent increases in carbon dioxide and fossil fuel emissions do not have a positive impact on renewable energy use in the OIC region of Southeast Asia; and the impact of energy imports has a significant impact on the consumption of renewable energy. In addition, how the findings of this study impact policy is discussed.

The Influence of Foreign Direct Investment (FDI), International Tourism and Export Value on Economic Growth in Member Countries of the Organization of Islamic Cooperation (OIC) During 2010-2020

Studies the effect of FDI, international tourism, export on economic growth have various results. Therefore, this study aims to determine the effect of FDI, international tourism, and exports on economic growth in OIC member countries in the 2010-2020 period using the panel data regression method. The number of samples used in this study were 45 countries. Simultaneously, there is a significant influence between the variables of FDI, international tourism, and export value on economic growth in OIC member countries. While partially FDI shows negative and significant results. On the other hand, international tourism has a positive and significant effect and exports also have a positive and significant effect. This study is only limited to 11 periods and three independent variables. For future researchers, it is expected to develop the number of variables and can increase the observation time.

The Concept of Islamic Social Finance Development Based on Financial Technology to Realize a Prosperous Society

Prosperity is a great goal that every country in the world aspires to. However, this condition will certainly not be achieved without a problem called poverty. If you look at the available data, about 30% of the world's population (1.56 billion) lives in multidimensional poverty; 50% of the world's population (3 billion) lives on less than $2.5 a day; And 80% of the world's population lives on less than $10 a day. This shows that Welfare in the world is only enjoyed by a small part of the population. A study published that OIC (Organization of Islamic Cooperation) member countries generally have a lower HDI (Human Development Index) than non-OIC countries. If viewed further, Islam has various solutions to avoid poverty through Islamic social finance instruments. Zakat, Infaq, and Waqf have great potential to be developed to prosper the community. So, in this paper, we will discuss the financial technology model used to develop the role of Islamic social finance instruments such as Zakat, infaq, and waqf. So that social and financial institutions can continue to develop various empowerment programs to prosper the community.

Measuring the Potential Integration of Indonesian Sharia Capital Market with the OIC Member Countries

The Indonesian Composite Index (ICI) experienced a critical session, the data showed the ICI fell by 6.58% which was the biggest decline in the last 9 years. The prevailing notion was that this pressure stemmed from the prevalence of the Covid-19 concern and is anticipated to be alleviated once Covid-19 disseminates further. The purpose of this study is to determine the causality and long-term cointegration relationship between sharia stock in Indonesia and the Organization of Islamic Cooperation (OIC) member countries, as well as to determine the contribution of shares of OIC member countries, such as Egypt, Oman, Saudi Arabia, Kuwait, Turkey, Bahrain, and Malaysia in the collapse of the Islamic capital market in Indonesia. The method used in this research is quantitative by using secondary data in the form of daily prices of the Sharia index sourced from the website www.investing.com. The population of the countries related to this research is 56 members of the OIC that are active until 2021. For data analysis, several tests were conducted, such as; Testing Time Series Data, Vector Autoregressive (VAR), Granger Causality Test, Johansen Model Cointegration Test, and Contagion Effect Test. The study found that; has not been able to prove the existence of cointegration between the Indonesian Islamic stock exchange and the stock exchanges of OIC member countries other than the Malaysian stock exchange. However, this study proves the interdependence between the Malaysian and Indonesian Islamic stock exchanges, but in the long term, the contribution of the Indonesian stock exchange is greater than the Malaysian Islamic stock index. In addition, another finding was that during the Covid-19 shock, the Malaysian stock position index showed more independence, whereas the decline that occurred at the beginning of the pandemic was caused without the JII or ISSI intervention index.

Fiscal policy and sukuk market development in OIC countries

PurposeThis study aims to examine the fiscal policy drivers of sovereign sukuk market development in selected Organization of Islamic Cooperation (OIC) countries. Specifically, the research aims to analyze the effects of fiscal deficit, public debt and government expenditure on sovereign sukuk market development, while controlling for macroeconomic and financial factors.Design/methodology/approachThe sample consists of eight OIC member countries that play active role in the global sukuk market which include Saudi Arabia, United Arab Emirates, Malaysia, Indonesia, Qatar, Pakistan, Turkey and Sudan. In addition, the study covers a period of 10 years spanning between 2011 and 2020. Similarly, the study uses three models, namely, random effect, generalized least square and system generalized method of moments panel models. To check for the robustness of the results, the study replaces current values of fiscal policy variables with one-year lagged values.FindingsThe findings establish that fiscal policy variables significantly influence the development of sovereign sukuk markets. Specifically, public debt is a significant fiscal variable that promotes sovereign sukuk market development, while fiscal deficit has a negative effect on the development of sovereign sukuk market. However, the findings suggest that government expenditure does not influence sovereign sukuk issuance in the OIC member countries.Practical implicationsThe study is significant to both investors and regulators in the sukuk market because it attempts to spotlight the importance of sound fiscal climate in developing sovereign sukuk market. Public debt is a facilitator, whereas fiscal deficit appears to be a constraint. Therefore, policymakers should determine the optimal mix of public debt and fiscal deficit in designing policies that promote sukuk market development.Originality/valueThe novelty of the study is its focus on the role of fiscal policy variables in facilitating sovereign sukuk market development. The study systematically establishes the link between fiscal policy and sovereign sukuk market in the OIC countries. Previous empirical studies focus extensively on the effects of macroeconomic, financial and institutional factors on sukuk market development.

The Impact of FDI and Economic Growth on Environmental Damage in Member Countries of the Organization of Islamic Cooperation

Global warming due to environmental damage is a serious problem for all countries in the world. The aim of this research is to analyze the impact of FDI and economic growth on environmental damage and to test the existence of the environmental Kuznets curve in Organization of Islamic Cooperation (OIC) member countries. This research uses secondary data that is a panel, consisting of 57 OIC member countries as a cross-sectional unit from 1998-2020. The data analysis method used in this research is a panel regression model with a fixed effect model (FEM) estimation method approach. This research found that foreign direct investment and economic growth have positive impacts and significant on environmental damage. This research also found that the environmental Kuznets curve hypothesis is also proven to exist in 57 OIC member countries. The policy implication that must be carried out is that the governments of OIC member countries must ensure that FDI which enters the country is FDI that uses environmentally friendly technology so that this FDI is not only good for the economy, but also good for the environment. Economic growth in society must also be accompanied by the increase of public awareness on the environment. This can be achieved through improvements in education. In this way, economic growth will have a good impact on the environment.

Comparative Trade Analysis Between Indonesia and Organization Islamic Country

Globalization that took place in the last few decades has caused various changes in the world economic order. This effort was also carried out by Muslim countries with the aim of improving economic relations and coordination at the regional level so that the Organization of Islamic Cooperation (OIC) was formed. This study analyzes the comparative advantage and trade patterns between Indonesia and the OIC countries which are limited by 10 OIC member countries which have the largest average export value from Indonesia over the last ten years. These countries include Bangladesh, Iran, Malaysia, Nigeria, Egypt, Pakistan, Jordan, Saudi Arabia, Turkey and the United Arab Emirates. Data analysis in this study uses a quantitative approach. In this study, statistical software tools will be used, namely Microsoft Excel to calculate RCA, RSCA and also trading patterns of the 10 OIC countries with the largest trade volume, Indonesia tends to have a comparative advantage in products of Animal or vegetable fats and oils and their cleavage (HS 15) and Man-made staple fibers (HS 55) where these products are products that have a comparative advantage in the ten countries. Indonesia managed to maintain the same comparative advantage in 2005 and 2020 against the United Arab Emirates (UAE) where the superior product group in those 2 years was exactly the same and only changed its ranking position.

How does institutional quality moderates the impact of public debt on economic growth? Startling evidence from OIC countries

Utilizing the data for forty-three member countries of the Organization of Islamic Cooperation (OIC), this study delves into the impact of public debt on economic growth and evaluates how institutional quality moderates this effect. The outcomes of the study disclose a nonlinear relationship between public debt and economic growth in OIC countries. The results disclose threshold value of public debt is 63.43 as a percent of GDP in OIC economies after this it thwarts economic growth. The quantitative outcomes unveil that the quality of political and economic institutions boosts economic growth. The findings from the various models demonstrate that political institutions influence the growth impact of the economic institutions, these findings are acknowledging the "hierarchy of institutions hypothesis." The results of the interaction term reveal that, even as public debt hurts economic growth, better political and economic institutional quality measures alleviate this negative impact. Institutional infrastructure reforms are critical for public debt accumulation policy to mitigate the undesirable consequence of debt on economic growth in OIC member countries. Countries should considerably lessen their dependence on public debt and keep it below the threshold level that harms economic growth. OIC countries should mobilize their internally produced revenue collection mechanisms in order to increase revenue generation and close the gap between available resources and spending while incurring the least amount of public debt. Our findings can be pragmatic to design a germane fiscal policy to maximize economic growth.

Banking Performance in OIC Member Countries: A Panel Study of Selected Islamic Banks

The Islamic finance industry has witnessed an interrupted progression globally during the last few decades owing to its sustainable and asset-based nature which promotes growth and development. The aim of the study is to investigate the performance of selected Islamic banks in Organization of Islamic Cooperation (OIC) Member countries by employing the System GMM dynamic panel estimator on a sample of 130 Islamic banks. The results suggest that profitability of Islamic banks is not only influenced by factors related to management decisions but also to changes in macroeconomic environment. Among the bank specific variables, the results suggest that capitalization, asset quality, efficiency and bank size are the key drivers of bank profitability. Furthermore, the findings show that the level of inflation has a positive significant effect implying that Islamic banks perform better during inflationary periods, while real GDP growth rate per capita has no significant impact on profitability. As a policy implication, the further improvement of capital adequacy guidelines and risk management practices for Islamic banks in OIC member countries is eminent. This would further enhance Islamic banks in the global financial industry characterized by increased fragilities in the overall banking sector.

DOES ISLAMIC BANKING PROMOTE FINANCIAL INCLUSION AMONG WOMEN IN OIC MEMBER COUNTRIES?

Previously, women in Organization of Islamic Cooperation (OIC) member countries were reported to be more financially excluded compared to the global average. Hence, this study aims to have a closer look at the aspect of gender inequality in financial inclusion in OIC member countries. Specifically, it seeks to examine the role of Islamic banking in enhancing financial inclusion among women in selected OIC member countries empirically. This study frames its analysis based on annual economic and financial data for OIC member countries from several sources including the World Bank Global Findex and World Development Indicators for each respected country for the years 2011 and 2014 using ordinary least squares (OLS) estimation. The findings show significant improvement in the growth of women’s account penetration for 2014, suggesting Islamic banking deepening has had a positive effect on financial inclusion among women in the OIC member countries under study. The significant positive effect of Islamic banking presence and accessibility of Muslim women to financial services indicates pivotal role of Islamic banking in promoting financial inclusion among women, enhance economic activities for women and reduce gender gap in finance. The finding helps to promote gender equality, empowerment and financial inclusion among Muslim women in OIC countries through Islamic banking services. The findings call for Islamic finance industry players to expand their outreach to Muslim clients and help policymakers to define their role more clearly in expanding financial inclusion, Islamic or otherwise, to Muslim adults.

Determinant of Economic Growth in Organization of Islamic Cooperation (OIC) Countries

The aim of this research is to find the effect of Inflation Rate, Exchange Rate and Population on Economic Growth in member countries of Organization of Islamic Cooperation (OIC). This research uses sample of 26 selected OIC member countries because it is adapted to the completeness of the publication of available data. This study a quantitative approach and analyzed using panel data analysis. The result revealed that inflation, exchange rate and total population rates simultaneously have a significant influence on economic growth in OIC member countries. Inflation has a significant effect on reducing economic growth. Exchange Rate has a significant effect on economic growth. The total population has a significant effect on economic growth.

Do Institutions Cause Growth? Theory and Evidence from some Selected OIC Countries

The main purpose behind this empirical investigation was to establish a relationship between institutional factors and economic growth. For this purpose, a sample of 40 countries belonging to Organization of Islamic Cooperation (OIC) is utilized. Panel data for the period 2002-2018 is collected from internationally reliable sources and suitable econometric tools are employed for the estimation purpose. Results revealed that indeed institutional factors matter for achieving higher economic growth. Control of corruption is found to be the main driving forces behind the economic growth of OIC countries. Similarly, constrains both executive and political are detrimental for economic growth. Rule of law and government effectiveness have played a positive role in the growth process; however, they are insignificant statistically. The control variables such as trade openness and mean years of schooling have played their expected positive role in economic growth. Moreover, employment level of the labor force and capital stock have impacted economic growth of these countries positively but insignificantly. The study recommends that countries belonging to the OIC shall move towards control corruption and relax constrains related to both executive and political regime and bring improvement in government and rule of law in order to speed up the process of economic growth. This study has provided detailed understanding about the role of institutions in economic growth both empirically and theoretically for OIC member countries for the first time.

Financial Inclusion and Human Development in OIC Member Countries: Evidence from Panel Quantile Regression Method

The Organization of Islamic Cooperation (OIC) member countries has the lowest human development index (0.63) compared with the world average (0.73) and developing countries’ average (0.68). However, the level of human development varies among the member countries, with the majority of the members categorized under low and medium levels of human development. To explore more information about the effect of financial inclusion on human development across different level of human development of OIC countries, this study used panel quantile regression to examine the effect of financial inclusion on low, medium, high and very high human development levels of OIC countries. The results revealed that financial inclusion promote higher human development in countries with medium human development, because of increase in income and investment in countries that move from low-income level to medium income status. Institutions found to promote higher human development in countries with high and very high human development and negatively affect human development in countries with low and medium human development levels. Also, remittance inflows have positive effect on human development across all levels of human development but stronger in countries at lower level of human development. Thus, policymakers in OIC should formulate policies that will promote financial inclusion in low- and meddle-income countries to achieve higher human development. In addition, policymakers should revitalize institutions especially in countries with low and medium human development levels. Also, the cost of sending remittance into OIC should be reduce to attract more remittances into the member countries.

Smart Power Management in OIC Countries: A Critical Overview Using SWOT-AHP and Hybrid MCDM Analysis

A conventional electrical grid mostly depends on the electrical power generated from fossil fuels. However, the pollutants from fossil fuels are the key factors for adverse climate change. Most of the developed countries of the world have already recognized the fact that the energy mix requires to be diversified by incorporating renewable energy. This is especially relevant for a good number of the member countries of the Organization of Islamic Cooperation (OIC), as much of their electric power is still generated from fossil fuels due to the relative abundance of fossil fuels in those countries. In order to integrate renewable energy sources into the hybrid energy mix, an existing conventional grid needs to undergo drastic changes. Alongside this, the population boom in the OIC member countries has caused higher demand for a steady supply of electricity that the conventional grids have long been struggling to cope with. With a view to solving this multifaceted problem, incorporation of the smart power management schemes is indispensable using a smart electrical grid, where information and communications technology is integrated into its major building blocks. This allows advanced applications of a grid, such as the formation of micro-grids, demand-side management, energy storage, high-tech power electronic converters, etc. As the smart grids are being adopted by many developed countries, it is high time for the OIC member countries to pay due attention to this development, if they have not already done so. This paper explains, with special focus on the OIC member countries, the various smart power management technologies, their operations and applications, and the benefits and challenges. Then, it goes on to carry out the Strength–Weakness–Opportunity–Threat with Analytical-Heuristic-Procedure (SWOT-AHP) analysis to evaluate its feasibility of incorporation and the underlying strategies appropriate for its implementation. Furthermore, a Hybrid Multi-Criteria-Decision-Making (MCDM) analysis is performed to evaluate the sequence of the emphasis that should be given on each of the technologies from those available for the smart power management initiative. Finally, the study reinforces the stance by drawing parallels from the UN Sustainable Development Goals (SDG) and highlights the importance of the smart grid in line with the global vision of SDG. This paper aims at assisting the decision-makers in implementing smart power management schemes in the OIC member countries, in particular, and other countries of the world, in general.

Comparative evaluation of top papers outputs of OIC member countries in the Essential Science Indicators database

The objective of this study was to analyze the top papers from Organization of Islamic Cooperation (OIC) member countries covered in the Essential Science Indicators (ESI) database during 2010-2019. The findings of the study showed that 41 out of 57 OIC member states have published 7,369 highly cited papers and 249 hot papers. The leading countries based on the overall top papers produced were Saudi Arabia, followed by Iran, Turkey, Malaysia, Pakistan and Egypt. Iran was ranked first in terms of hot papers. When analysed by document type, all of the top papers were articles and published in the English language. The Lancet ranks among the top in terms of publishing OIC member countries’ top papers, showing that it has a great academic influence producing highly cited papers and hot papers. The top five organizations producing top papers are all top universities in their country and they are also ranked globally. King Abdulaziz University contributed the most for both highly cited papers and hot papers. NANOFLUID was the most common keyword and core subject in highly cited papers, and the keyword MECHANICAL-PROPERTIES was the core subject identified in hot papers. Cluster 1 is the largest subject cluster of highly cited papers with the topic Nanotechnology and it is also the largest cluster of hot papers.

Assessing the impacts of globalization and gender parity on economic growth: empirical evidence from OIC countries.

The contemporary debate on globalization and gender equality has a strong impact on economic growth. The present study analyzes the impacts of globalization and gender parity on economic growth in the Organization of Islamic Cooperation (OIC) 47 member countries for the period (1991-2017), using System GMM panel data technique. The results of system GMM have also been empirically estimated by making two groups (viz., low-income and high-income OIC member countries from the World Bank data classification, 2019) to examine the robustness of globalization and gender parity on economic growth. The results reveal that there is a negative impact of globalization on economic growth in the overall sample of OIC countries. When estimated by decomposing low-income countries and high-income countries, globalization has a significantly positive impact on economic growth in the case of high-income OIC countries, whereas globalization slashes GDP in the case of low-income OIC countries. The study finds that there is a positive impact of gender parity (ratio of female to male labor force work participation) on economic growth. Moreover, foreign remittances, government expenditures, capital formation, and human capital are also becoming the causes of a significant increase in economic growth in OIC member countries.

Financing Afforestation in the Organization of Islamic Cooperation Countries: What Role for Islamic Economics and Finance?

This paper looks at environmental conservation within the growing understanding of the urgent need to confront the two menaces of desertification and deforestation through afforestation schemes in the Organization of Islamic Cooperation (OIC) member countries. Deforestation is one of the main contributors to global greenhouse gas emissions, ecosystem degradation, and from there the rising cases of poverty in the developing world. Their impacts on the economy and environment of OIC member countries has been devastating. Desertification and deforestation are caused by human activities like logging, harmful farming practices, as well as haphazard cutting of trees in order to make way for city buildings and farms. The paper shows that poor handling of past responses to desertification problems can be solved with the right approaches. It first looks at existing approaches to the problem and causes of their failure. Then, it proposes an alternative model based on fiqh teachings and recent developments in Islamic economics and finance. The paper syntheses conventional and Islamic approaches towards solving the problems of desertification, deforestation, and rising temperatures in the OIC countries. It delineates specific functions and contributions of each one of (a) the Islamic state, (b) the institution of waqf, (c) Islamic finance, and (d) the Islamic firm.

Jurisprudence and demand for halal meat in OIC

Purpose The purpose of this paper is to estimate the import demand function for halal meat in member countries of the Organization of Islamic Cooperation (OIC) and to suggest some policy recommendations for OIC members that can enhance intra-OIC halal meat trade. Design/methodology/approach By using an augmented gravity model, this study empirically estimates the major determinants of halal meat import demand in OIC member countries. Moreover, a major determinant is the difference in Islamic jurisprudence (fiqh). Findings The results of this study show that the variation in Islamic jurisprudence is one of the primary determinants of intra-regional trade of halal meat import demand in OIC member countries. Research limitations/implications Although trade flows are set up in several years and lag variables are well capable to examine trade flows, this study only includes the static nature of halal meat trade flows toward selected top 20 OIC member countries. Practical implications This study suggests that developing a common halal meat market and one halal certification body under the OIC can enhance intra-OIC halal meat trade, this may be a challenge given the five diverse interpretations of halal meat within Islamic jurisprudence among OIC member countries. Originality/value This paper identifies the role of Islamic jurisprudence (fiqh) in determining the import demand of halal meat in OIC countries, which has not been addressed in empirical literature. It also provides some policy implications to ameliorate the declining trend of intra-OIC trade flows of halal meat.

QUALITY OF HUMAN DEVELOPMENT INDEX (HDI) IN MUSLIM COUNTRIES (CASE STUDY OF OIC MEMBERS)

This study analyzes factors or variables that effectof human development index (HDI) in Muslimcountries, a case study of the Organization of Islamic Cooperation (OIC) member countries. The data of 33 selected OIC member countries from 2007-2016 were analyzed using panel data regression analysis. The entire models show the significant influence of some independent variables to the level of HDI in Muslim countries. However, a variable number of the population contributes positively to HDI in all models. Unfortunately, foreign direct investment (FDI) does not add to the increasingof HDI; this is the biggest challenge faced by the government in various Muslim countries. While government fiscal policy reflected in government spending (G) contributes positively to HDI in OIC member countries.

Delivery of Health Care Service in the Organization of Islamic Cooperation (OIC) Member States and Regional Diversity: A Bootstrap Dea Analysis

For the last few decades, demographic changes require new and expensive medical innovations, which ultimately put the health care system under financial pressure. Therefore, provision of efficient services for the sustainability in health care system is mandatory. The objective of this study is to explore the performance of health care services provided in 55 OIC member countries during 2011 and 2015.The bootstrap Data Envelopment Analysis and Truncated regression approach have been applied to observe the health system and estimate the efficiency score in 55 OIC member countries. The findings of DEA show that cost efficiency (CE), technical efficiency (TE) and allocative efficiency (AE) of health care system of OIC member countries on average are 0.52, 0.72, and 0.70, respectively. It indicates that OIC countries are not good at selecting cost efficient input mix. The results of truncated regression approach indicate that out-pocket health expenditures is the most important determinant relative to other indicators. It is suggested that it is hard to improve the overall health system at most efficient level. For this purpose there is a need to educate the mass and provide the better opportunities so that people can earn handsome amount, through which they may have better health care.