Organization Of Islamic Countries Research Articles

Effect of ICT and Urbanization on Economic Growth: New Insight from OIC Countries

ABSTRACT This paper examines the relationship between ICT, urbanization, and economic development. The context of the analysis is the Organization of Islamic Countries from 1997 to 2019. We develop an original empirical approach based on principal component analysis to generate ICT index. To mitigate any endogenous issue, we utilize the instrumental variable generalized method of moments. Further, we use pooled mean group estimation to check the short-run and long-run relationships between the variables. Our results have two significant implications. First, we demonstrate the favorable influence of ICT on economic growth in OIC nations in both the short and long term. Second, both urbanization and economic growth have a clear and substantial impact in the short and long term. Finally, our analysis supports the feedback hypothesis between ICT and economic growth. These novel empirical findings will help policymakers design ICT development policies to fulfill sustainable economic development in OIC countries.

Islamic Game Theory approach for overcoming base erosion and profit shifting challenges for the Organization of Islamic Cooperation

Purpose: This paper aims to demonstrate a framework for addressing base erosion and profit-shifting challenges in the Organization of Islamic countries Design/methodology/approach: The paper is based on inferential deductive research and a game theory approach. Findings: The paper suggests new strategies for overcoming the challenges of base erosion and profit shifting while strengthening adherence to Islamic law. Research limitations/implications: The research is limited to publicly available data and estimates for the game theory approach. This may represent a limit given the potential lack of more detailed and recorded data. Practical implications: The framework may significantly assist in shaping multilateral agreements on taxation. Social implications: The framework would lead to fairer taxation and stronger support of the society. Originality/value: This paper demonstrates a new framework addressing the challenges of base erosion and profit shifting

COVID-19 Attack on Stock Markets: Event Study and Panel Data Analysis of Organization of Islamic Countries (OIC)

The outbreak of COVID-19 has hampered the economies in all over the world. Due to this pandemic, many economic activities worldwide continue to be slumps. Current study examines the effect of COVID-19 contagion epidemic on stock markets of 23 OIC economies. Event study approach is employed to quantity abnormal returns (ARs). Fixed effect and random effect models are employed for the cause of abnormal return. Sixty (0 to 59) days, including the event day, are observed in the event window at the release of news related to COVID-19 in media at the international level; each window contains ten days. Pre-event window includes 120 days afore from the event day. We examine the ARs significantly negative in 4 ensuing windows in 59 days. Negative AR is significant for developed as well as developing economies. Findings reveal that the cumulative ARs from day first to day 33 remain in the range of decimal -0.203 to single digit -9.09. Still, from day 34 to day 59, it remains in the range of double digit -10.150 to -19.727, which is the consequence of increased distress in the stock market caused it requires the serious attention of the states to control this pandemic. Further, panel data analysis suggests that more time is required to return to the normal situation of stock markets from the adverse effect of COVID-19. Current investigation is significant for decision bodies for example national banks, stock market officials and state agencies to boost confidence among investors because this pandemic hampered social-economic activities all over the world, including the OIC economies.

DOES ISLAMICITY AFFECT ECONOMIC GROWTH? EVIDENCE FROM OIC, HIGH, MIDDLE, AND LOW-INCOME COUNTRIES

Islam is a way of life which not only affects the social and personal aspects of human life but also plays a significant part in the political and economic decisions of the people. Empirical studies on the chief determining factors of economic growth have neglected the effect of Islamicity on economic growth. This study expands upon the recent literature on economic growth and Islamicity. By using the Islamicity indices data for the first time, this study provides a brand-new viewpoint on Islamicity and the economic growth nexus in the world, focusing on sub-divisions of high, middle, and low-income countries and the Organization of Islamic Countries (OIC). The data spans from 2010 to 2017 while using a dynamic model. By applying the panel techniques, we provide empirical evidence indicating that the Islamicity effect becomes weaker as the economy grows regardless of whether a country is an OIC member.

The Impact of Exchange Rate Volatility and Inflationary Regimes on the Consumer Price Index in Organization of Islamic Countries (Panel FMOLS Co-integration Approach)

The Impact of Exchange Rate Volatility and Inflationary Regimes on the Consumer Price Index in Organization of Islamic Countries (Panel FMOLS Co-integration Approach)

Constitutional Rules on Waqf and Fiscal Policy Outcomes

Fiscal policy, inter alia, looks at the list of government revenues. The constitutional rules provide guidance on the list of revenues. However, the previous studies find that waqf is not considered as part of government revenues. In this study, we argue that waqf brings in a new list of government revenues. To prove this point, we select a sample of fifty-seven countries under the Organization of Islamic Countries. The constitution of each country is investigated by using content analysis. The study uses a combination of several keywords, namely “tax or taxes or fiscal obligations,” “revenues or budget or finance” and “waqf” in investigating the rules on revenues and waqf. The findings in this study are classified into five kinds of countries, namely countries that highlight government revenue and waqf in the constitution, countries that claim to recognize sharia law as the basis of the law but the waqf rules in the constitution are missing, countries that mention in their constitution that government revenues are placed under the government system, financial system, and parliament, countries that place waqf is ruled under the public finance matter, and countries that place waqf as the main policy. This finding implies that the constitutional rules lead to the view that waqf is a part of public finance that can be used as a fiscal policy tool and should be included in the state budget plan.

IMPACT OF NON-INTERMEDIATION ACTIVITIES OF BANKS ON ECONOMIC GROWTH AND VOLATILITY: AN EVIDENCE FROM OIC

This paper investigates the impact of non-intermediation activities of banks on economic growth and volatility of OIC. For the purpose, we utilize LSDVC estimation approach using the sample of Organization of Islamic Countries (OIC) member countries for the period of 2001–2013. We find non-intermediation income to be insignificant for both economic growth and volatility of OIC member countries in general though it reduces volatility of Gulf Cooperation Council (GCC) economies. Intermediation activities are found to be insignificantly related with the growth of OIC member countries, but on the other hand, they are found to reduce volatility in OIC member countries. Our results are robust across different specifications and estimators.

SOUTH-SOUTH TRADE AND NORTH-SOUTH TRADE FOR GROWTH AND PRODUCTIVITY: A CROSS-COUNTRY ANALYSIS FOR THE CIS COUNTRIES

This paper examines the impact of trade with various country groupings on both output and total factor productivity growth of Commonwealth of Independent States countries using the trade measures from the Eora multi-region input-output database for 1990-2013 period. Since the growth and productivity effects of various trade measures vary by several country groupings, this study evaluates the model for the developed countries (North), the developing countries (South), the Commonwealth of Independent States countries (South), the Organization of Islamic Countries (South) and the European Union countries (North) sequentially. Regarding the potential of the Commonwealth of Independent States countries for sustainable competition regionally and globally, this analysis is a worthwhile endeavor to guide the policy makers for future trade collaborations. Moreover, since the Commonwealth of Independent States countries are among the South countries, this study mainly enables the comparison of North-South trade with South-South trade and their effects on output and total factor productivity growth. The most significant result of this analysis is that the Commonwealth of Independent States countries gain more from trade with the South countries in terms of positive output and total factor productivity growth. While the exports of Commonwealth of Independent States countries to all country groups have a positive effect, imports from the North countries for the Commonwealth of Independent States have a negative effect on both income and total factor productivity. Estimates of the effects of trade on growth (both exports and imports) are supported by estimates of the effects on total factor productivity, regardless of the econometric forecast method.

Trapped in Statelessness: Rohingya Refugees in Bangladesh.

The Rohingya people are one of the most ill-treated and persecuted refugee groups in the world, having lived in a realm of statelessness for over six generations, and who are still doing so. In recent years, more than 500,000 Rohingyas fled from Myanmar (Burma) to neighboring countries. This article addresses the Rohingya refugee crisis in Bangladesh, with special emphasis on the living conditions of this vulnerable population. We reviewed several documents on Rohingya refugees, visited a registered refugee camp (Teknaf), collected case reports, and conducted a series of meetings with stakeholders in the Cox’s Bazar district of Bangladesh. A total of 33,131 registered Rohingya refugees are living in two registered camps in Cox’s Bazar, and up to 80,000 additional refugees are housed in nearby makeshift camps. Overall, the living conditions of Rohingya refugees inside the overcrowded camps remain dismal. Mental health is poor, proper hygiene conditions are lacking, malnutrition is endemic, and physical/sexual abuse is high. A concerted diplomatic effort involving Bangladesh and Myanmar, and international mediators such as the Organization of Islamic Countries and the United Nations, is urgently required to effectively address this complex situation.

Islamist Terrorism and State Failure in Northern Nigeria

Boko Haram, six years after it declared war on the Nigerian state, has extended its operation to the neighboring countries of Cameroun and Chad and ranks as the world’s deadliest terrorist organization. These developments have lent credence to the view that it is on a mission to eradicate Western cultural influence in Nigeria. However, the conventional narrative does not explain the Jonathan administration’s inability to dismantle or significantly degrade it despite an apparently favorable balance of power. Furthermore, it does not explain the government’s failure to nip it in the bud during the period of radicalization that for ten years preceded the inception of its terrorist mission. To bridge the existing knowledge gap pertaining to Boko Haram’s resilience and growth, this article posits that the Islamist terrorist group and other insurgencies are symptomatic of the dysfunctionality of the Nigerian state. State dysfunction or failure derives from the chronic inclination of the national elites to abuse their role as custodians of public institutions and resources. As evidenced by key national decisions related to constitutional separation of state and religion, Nigeria’s membership in the Organization of Islamic Countries, the adoption of sharia by northern states, and the Jonathan administration’s counterinsurgency strategy, the autonomy of the Nigerian state and its ability to safeguard the safety of life and property within its borders have been severely compromised by elite behavior marked by political expediency and obsession with personal aggrandizement. Contrary to the conventional narrative, politicians from throughout Nigeria, including those in the south, contributed to the conditions that gave rise to Boko Haram.

The importance of Shari’ah supervision in Islamic financial institutions

Islamic financing differs from conventional financing in that it prohibits the payment or receipt of interest. The concept of interest-free financing existed prior to the advent of Islam and was embraced in ancient Arabia. The concept was officially launched in the 1970’s by the Organization of Islamic Countries (OIC) and introduced in most Muslim nations and some Non-Muslim nations. But while it has experienced phenomenal growth rate, the Islamic financial system has been criticized for failing to incorporate the true spirit of Shari’ah in their actions. Islamic financial institutions are also divided over the interpretation of which products are considered halal (acceptable under Islamic law). In order to overcome some of these issues, financial institutions dealing with Islamic products are required to utilize the services of a Shari’ah adviser or a Shari’ah Supervisory Board (SSB). The paper recommends a more collaborative effort between the central banks of Muslim nations and regulatory organizations

International trade, religion, and political freedom: an empirical investigation

This paper explores the impact of religion (Islam), culture, and political freedom on bilateral trade flows by employing an augmented version of the gravity model. A stratified global sample of thirty–three countries for the period 1996–99 is selected. Unlike past studies that used gravity models to estimate separately the impact of religion, culture, or language on trade in a categorised framework such as the Organization of Islamic Countries, this study investigates the effects of religion, culture, and political freedom in one model and within a global framework. After controlling for oil–exporting countries and regional trade arrangements, findings reveal that, on average, Muslim majority countries trade less than their Christian, Buddhist, or other counterparts. Results also reveal that countries with more political freedom and English language affiliation (a proxy for one aspect of culture) tend to trade more than the model predicts.

Islamic nations set themselves tough target for science budgets

Science and education ministers of the Organization of Islamic Countries (OIC) endorsed a draft strategy for developing science in the Muslim world on Monday (28 June). The main, and most controversial, recommendation is that governments should allocate a minimum of one per cent of their gross domestic product for scientific and technological development.