To increase intra-OIC trade, defined as intra-OIC imports as a share of total imports of OIC countries, Islamic Development Bank (IDB) has been implementing trade finance activities. This study tries to shed a light on the determinants of intra-OIC trade and the impact of IDB trade financing on intra-OIC trade. Using gravity model both the intuitive and the theoretical one, this study observes eighteen OIC countries from 2000 until 2014. This study finds that GDP, distance of two capitals, IDB trade financing, common language, common colony, colony, landlocked, contiguous, the Arab Spring events and Asian as PTA are statistically significant factors in determining export. This study focuses on producing an output that can guide OIC member countries and IDB in developing a trade financing scheme that can increase intra-OIC trade.
|Number of pages||32|
|Journal||Journal of Economic Cooperation and Development|
|Publication status||Published - 1 Jan 2019|
- IDB trade financing
- Intra-OIC trade
- The gravity model