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Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

Author

Listed:
  • Hammed Agboola Yusuf
  • Luqman Olanrewaju Afolabi
  • Waliu Olawale Shittu
  • Kafilah Lola Gold
  • Murtala Muhammad

Abstract

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

Suggested Citation

  • Hammed Agboola Yusuf & Luqman Olanrewaju Afolabi & Waliu Olawale Shittu & Kafilah Lola Gold & Murtala Muhammad, 2021. "Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa," Insight on Africa, , vol. 13(2), pages 177-191, July.
    • Handle: RePEc:sae:inafri:v:13:y:2021:i:2:p:177-191
    DOI: 10.1177/0975087820987174
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    References listed on IDEAS

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    Cited by:

    1. Nida Rahman & Krishan Sharma, 2026. "Regulatory quality and value-chain participation in regional comprehensive trade partnership (RCEP): evidence of nonlinear effects," Journal of Regulatory Economics, Springer, vol. 69(1), pages 1-24, December.
    2. Ridwan, Ibrahim Lanre & Senathirajah, Abdul Rahman Bin S. & Al-Faryan, Mamdouh Abdulaziz Saleh, 2024. "Investigating the asymmetric effects of financial development on trade performance in Africa: Can digitalization, transport services, and regulatory quality drive the vision 2063?," The Journal of Economic Asymmetries, Elsevier, vol. 30(C).
    3. Michael Kwowove Didongo & Daniel Sakyi & Elliot Boateng & Enock Kojo Ayesu & Donatus Kuuzume, 2025. "Effect of institutional quality on intra-African agricultural trade," International Economics and Economic Policy, Springer, vol. 22(4), pages 1-40, October.

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