Nor'Aznin Abu Bakar

The Determinants of Exports between Malaysia and the OIC Member Countries: A Gravity Model Approach☆

Abstract This paper investigates the impact of economic factors on bilateral exports between Malaysia and the OIC member countries. Using the panel estimation for gravity model, the data covers the period of 1997 to 2009. The gravity estimates imply the importance of size effects, level of openness of the economy, inflation rates, and the exchange rates as determinants of Malaysias exports to OIC countries. The estimation of individual effects shows the significance of distance and institutions in enhancing Malaysia-OIC exports.

Determinants of Foreign Direct Investment (FDI) in Agriculture Sector Based on Selected High-income Developing Economies in OIC Countries: An Empirical Study on the Provincial Panel Data by Using Stata, 2003-2012☆

Abstract This research endeavour set out to empirically examine the determinants of Foreign Direct Investment (FDI) in Agriculture Sector based on selected high-income developing economies in OIC countries. The agriculture sectors react as important keys in the expansion of any economy growth to eliminate the poverty issues. Therefore, it reviews the experiences of agriculture investment in selected member countries with a view to identify potential roles for countries seeking FDI and their development partners in nurturing FDI intra OIC especially in the agriculture new investment. In this study, the FDI in Agriculture Sector react as dependent variable and the independent variable economic determinant, list of market size, inflation, poverty, exchange rate and infrastructure in selected OIC Countries (Malaysia, Oman and Brunei).

Trade openness, financial liberalization and economic growth: The case of Pakistan and India

Purpose The purpose of this paper is to empirically examine the effects of financial liberalization and trade openness on the economic growth of two countries, namely, Pakistan and India for the period 1985-2014. Design/methodology/approach This study uses the autoregressive distributed lag technique, which allows mixed order of integration. In addition, it uses the principal component method to create an index for financial liberalization to examine how it affects the economic growth of the selected countries. Findings The findings reveal that in the short and long run, trade openness has positive effect on the Pakistan’s economic growth while the financial liberalization has positive impact only in the long run. In the case of India, both financial liberalization and trade openness positively and significantly influence the economic growth in the short and long run. Practical implications By comparing the results of both countries, trade openness and financial liberalization increase the economic growth of India more than that of Pakistan. These results suggest that Pakistan should consider appropriate positive policies regarding financial liberalization and trade openness to achieve high and stable economic growth in the future. Originality/value This study creates financial liberalization index by using the principal component analysis method to explain the role of financial liberalization in the economic growth of Pakistan and India. In addition, it makes comparison of the results based on which country benefits most from the liberalization of trade and financial sectors. Only very few studies have examined these countries, yet their results have remained inconclusive as well.

Openness and ECOWAS Regional Trade: A Panel Cointegration Analysis Using a Gravity Model

This paper investigates the general effect of ECOWAS regional integration agreements on trade among its members, as well as the level of openness across ECOWAS. The panel dataset consists of bilateral flows of export from 15 ECOWAS countries for the period of 1983–2013, the cointegration method was used for estimation under the gravity model. Comparing the results, a negative and significant coefficient was discovered for the ECOWAS dummy variable, trade openness and financial openness, under pool ordinary least squares (POLS) estimators. Under dynamic ordinary least squares methods the coefficient of the ECOWAS dummy variable remained positive, but not significant. Trade openness was negative and significant under DOLS, while the variable remained positive and not significant under DLSDV. The financial openness variable was both negatively and positively insignificant under both. The empirical evidence indicates that there is a long term relationship inside ECOWAS, and thus, the level of openness among members impedes the level of trade flows on integration. However, the results reveal the fundamental significance of appropriate accounting for endogeneity when assessing trade policies.

Causality nexus between trade, political instability, FDI and economic growth: Nigeria experience

The purpose of this study is to examine the causal relationship between FDI inflow, volume of trade, political instability, and gross domestic product (GDP) in Nigeria using time series data from 1981 to 2014. The ADF and Phillips Perron (PP) tests were used to see whether all variables are stationary. Consequently, the Johansen and Juselius cointegration tests were employed to investigate the existence of long-run relationship among the variables. The findings indicated that there was a long-run relationship among the variables used in this study. The multivariate Granger causality test was carried out using the VECM approach to analyse the causal links among all the variables. A bidirectional causality was discovered between the FDI inflow and economic growth (GDP), but there was one-way direction between political instability and FDI, as well as between political instability and GDP. Apart from that, there was also one-way relationship between FDI and volume of trade within the stated period. The results from this study can be used as a guidance for policymakers on FDI, where the government can pay more attention on the issue of political instability and insecurity. The government needs to review and implement a strong, vibrant policy to ensure maximum security and peace in the country with the purpose of attracting more foreign investors.

Determinants of Foreign Direct Investment (FDI) in Agriculture Sector based on Selected High-income Developing Economies in OIC Countries: An Empirical Study on the Provincial Panel Data by Using Stata, 2003-2012

This research endeavours to set out to empirically examine the determinants of Foreign Direct Investment (FDI) in Agriculture Sector based on selected high-income developing economies in OIC countries. The agriculture sectors react as important keys in the expansion of any economy growth to eliminate the poverty issues. Therefore, it reviews the experiences of agriculture investment in selected member countries with a view to identify potential roles for countries seeking FDI and their development partners in nurturing FDI intra OIC especially in the agriculture new investment. In this study, the FDI in Agriculture Sector react as dependent variable and the independent variable economic determinant, list of market size, inflation, poverty, exchange rate and infrastructure in selected OIC Countries (Malaysia, Oman and Brunei).