The impact of country risk and its components on the export of industrial goods in the member countries of the Organization of Islamic Cooperation (OIC)

Karimi, Farzad; Jahanbakhsh Porjabari, Mehdi; Rajabi, Mostafa

doi:10.30473/jier.2024.70577.1442

Document Type : applicative

Authors

¹ Associate Professor of International Economics, Department of Management, Mobarakeh Branch, Islamic Azad University, Mobarakeh, Iran.

² Department of Economics, Dehaghan Branch, Islamic Azad University, Dehaghan, Iran

³ Department of Economics, Khomeini Shahr Branch, Islamic Azad University, Khomeini Shahr, Iran

10.30473/jier.2024.70577.1442

Abstract

During the last three decades, the industrial export growth of the member countries of the Organization of Islamic Cooperation (OIC) has slowed down. The increase in the hidden exchange cost in the export of industrial goods through the country risk channel is known as one of the effective factors.In recent empirical studies, various factors affecting bilateral exports of OIC member countries have been introduced, but empirical studies that consider the effect of country risk on the flow of bilateral industrial exports are very limited.Therefore, the main purpose of the current study is to investigate the impact of country risk and its components, including economic, financial and political risk, on the industrial exports of member countries of the Organization of Islamic Cooperation. In order to achieve this goal, within the framework of the gravity model and the pseudo-Poisson maximum likelihood method (PPML), the significance of the relationship between country risk and its components on bilateral industrial exports of OIC member countries in trade with import partners was investigated. . In this study, panel data was used for the period from 2021 to 2002.The findings of this study show that the country risk of the member countries of the organization as well as their strategic objectives have a significant impact on the flow of bilateral industrial exports. This finding is also true based on each of the constituent components of country risk, including economic, financial and political risk. In addition, political risk has the greatest impact on the industrial exports of OIC member countries compared to other factors. It is suggested that the Organization of Islamic Cooperation and its related institutions present appropriate policies for the creation and development of political and economic risk insurance coverage.

Keywords

Main Subjects

Industrial Economics, Structure_Conduct-Performance

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Journal of Industrial Economics researches

The impact of country risk and its components on the export of industrial goods in the member countries of the Organization of Islamic Cooperation (OIC)

References

References

Volume 7, Issue 26
August 2024
Pages 63-84

The impact of country risk and its components on the export of industrial goods in the member countries of the Organization of Islamic Cooperation (OIC)

References

References

Volume 7, Issue 26August 2024Pages 63-84

Volume 7, Issue 26
August 2024
Pages 63-84