Download fulltext HTML
Fasa, M. I., Indahsari, L., & Hilal, S. (2024). Spatial Analysis of the Effect of Halal Product Export and Import on Current Accounts in OIC Countries. KnE Social Sciences, 9(16), 91–105. https://doi.org/10.18502/kss.v9i16.16237

https://doi.org/10.18502/kss.v9i16.16237

statistics

  • 240 Abstract Views
  • 48 PDF Views
  • 0 HTML Views

authors

  • Muhammad Iqbal Fasa

    Muhammad Iqbal Fasa

    Universitas Islam Negeri Raden Intan Lampung
    https://orcid.org/0000-0002-0019-4525
  • Leny Indahsari

    Leny Indahsari

    Universitas Islam Negeri Raden Intan Lampung
  • Syamsul Hilal

    Syamsul Hilal

    Universitas Islam Negeri Raden Intan Lampung

Published Date

  • May 17, 2024

Spatial Analysis of the Effect of Halal Product Export and Import on Current Accounts in OIC Countries

KnE Social Sciences / 1st International Conference on Islamic Economics, Business Development and Studies (1st ICIEBDS) / Pages 91–105

Abstract

OIC countries are countries that have the highest development of the halal industry. Most of the export and import activities carried out by OKI are halal products. Exports and imports of the country’s halal products will describe the condition of the current account surplus or deficit. This study aims to determine the spatial dependence on the current account and the effect of exports and imports of halal products on the current account. The method used descriptive quantitative techniques with spatial analysis. This research was conducted in 51 OIC countries in 2021 using secondary data. The independent variable values are obtained from ITC and the dependent variable is obtained from WDI. The results showed that there is a spatial autocorrelation in the current account, and the spatial autoregressive regression (SAR) results show that exports of halal products have a significant positive effect on the current account. Meanwhile, imports of halal products have a negative but not significant effect on the current account.


Keywords: spatial, halal export, halal import, current account balance

References
[1] DinarStandard, “State of Global Islamic Report 2022,” DinarStandard.

[2] Eun Kyeong YU, Hee-Yul LE, Dong-Hwan KI. “Is Halal Certification Necessary for Exporting to Islamic Countries? Focus on OIC Countries,” cult. int. J. Philos. cult. Axiology. 2020;17(1):173–92.

[3] Azam MS, Abdullah MA. “GLOBAL HALAL INDUSTRY: REALITIES AND OPPORTUNITIES,” int. J. Islam. buses. Ethics. 2020 Mar;5(1):47.

[4] Nadeer Al Jallad. The concept of al-halal and al-haram in the Arab-Muslim Culture: a translational and lexicographical study. Jordan: Univ.; 2008. pp. 77–86.

[5] M. Gul, J. Akbar, M. Ikramullah, and MH Khan, “A Research Overview of Challenges in The Global Halal Market”.

[6] Sutan Emir Hidayat, Ahmad Rafiki, and Muhammad Dharma Tuah Putra Nasution, “Halal Industry’s response to a current and post-COVID -19 landscape and lessons from the past,”J. Islam. mark., 2021, https://doi.org/10.1108/JIMA-06-2020-0180..

[7] Maya Adiba E. “CONSUMER PURCHASING BEHAVIOR OF HALAL COSMETICS: A STUDY ON GENERATIONS X AND Y,”J. Islam. Monet. Econ. Finance. 2019 May;5(1):169–92.

[8] Nurrachmi R. The Global Development of Halal Food Industry: A Survey. Islamic Tazkia. Finance Bus. Rev. 2018 Mar;11(1): https://doi.org/10.30993/tifbr.v11i1.113.

[9] Susilawati C. “The Role of the Halal Industry in Recovering the National Economy in the Covid-19 Pandemic,”int. J. Nusant. Islam. 2020 Dec;8(2):202–14.

[10] Zubaid NL. “Indonesian Export Diversification to OIC Countries during Covid-19 Pandemic: A Literature Review,” vol. 5, no. 2, 2023.

[11] Gozgor G. Causal Linkages among the Product Diversification of Exports. Turkey: Economic Globalization and Economic Growth; 2017.

[12] NHN Azman, “Halal Development and Food Exports: Evidence from Malaysia and MEACs,” 2012.

[13] Guidelines for Certifications of Halal Meat Products. New Delhi: Department of Commerce Directorate General of Foreign Trade; 2023.

[14] Statistical Yearbook on OIC Member Countries 2020. Ankara, Turkey: SESRIC; 2021.

[15] “Top exporters of halal foods to OIC countries worldwide in 2021.” https://www.statista.com/statistics/785151/top-exporters-of-halal-food-global/

[16] Yazid F, Kamello T, Nasution Y, Ikhsan E. “Strengthening Sharia Economy Through Halal Industry Development in Indonesia,” inProceedings of the International Conference on Law, Governance and Islamic Society (ICOLGIS 2019), Banda Aceh, Indonesia: Atlantis Press, 2020. https://doi.org/10.2991/assehr.k.200306.187.

[17] Shafi, Khuram, Liu Hua, Zahra Idrees, and Amna Nazeer, “Impact of Change Rate, Inflation Rate and Interest Rate on Balance Payment : A Study from India and Pakistan,” vol. 3(1), pp. 9–13, 2015.

[18] Apergis N, Katrakilidis C, Tabakis N. “Current Account Deficit Sustainability: the Case of Greece,”appl. Appl Econ Lett. 2000;7(9):599–603.

[19] Candra CS, Adrian J, Lim VC. “Indonesian Trade Deficit with China: Background and Gray Forecasting,”int. J. Gray Syst. 2021 Dec;1(2):33–46.

[20] Polyak P. The silent losers of Germany’s export surpluses. How current account imbalances are exacerbated by the misrepresentation of their domestic costs. Comp Eur Polit. 2022;(Apr): https://doi.org/10.1057/s41295-022-00291-8.

[21] Noraditha Y, Heriberta H, Emilia E. “Analysis of variables affecting the performance of Indonesia’s current account balance for the period 2006-2020,”EJ. Trader. ind. Dan Monet. 2022 Mar;10(1):51–62.

[22] Bagaskoro MN. EXPORT IMPORT EFFECT ON INDONESIAN CURRENT TRANSACTIONS BEFORE AND AFTER SUBPRIME MORTGAGE. ECOPLAN J. Econ. Dev. Studs. 2019 Apr;2(1):21–32.

[23] Purnama WA, Auwalin I. The Influence of Exports of Halal Products on Current Account Balance in Indonesia. J. Ekon. Sharia Theory And Application. 2020 Jan;6(6):1242.

[24] Syamsuri N, Masrifah AR. Halal Industry Products Influence on Current Account in OIC Economics in Asia on 2015-2019. J. Ilm. Econ. Islam. 2022;8:3401–11.

[25] Todaro, MP. Smith (SC): Economic Development; 2011.

[26] Madura J. International Finance Management, 9th ed. South Western: Thomson, 2008.

[27] Hou S, Li Y. “Empirical Analysis of the Influence Factors of China’s Current Account Surplus,” inProceedings of the 2017 5th International Education, Economics, Social Science, Arts, Sports and Management Engineering Conference (IEESASSM 2017), Qingdao, China: Atlantis Press, 2018. https://doi.org/10.2991/ieesasm-17.2018.90.

[28] AR Masrifah, “Halal Industry Products influence on Current Accounts in OIC Economics in Asia on 2015-2019”.

[29] Wahyu Puji Astuti. Export and import. Semarang: Literary Pearls; 2019.

[30] Adrian Sutedi,Import export law. in 1. jakarta: Achieving Hope for Success, 2014.

[31] Sri Herianingrum N. The Influence of GDP, Exports and Investment on Inflation in Five IDB Member Countries. J. Ekon. 2020 Mar;25(1):81.

[32] Arif S. Food quality standards in developing quality human capital: an Islamic perspective. Afr J Bus Manag. 2011 Dec;5(31): https://doi.org/10.5897/AJBM10.1692.

[33] Bryan A. Social Research Method. New York: Oxford University Press; 2012.

[34] Anselin L. “Lagrange Multiplier Test Diagnostics for Spatial Dependence and Spatial Heterogeneity,”geogr. Geogr Anal. 2010 Sep;20(1):1–17.

[35] Lee SI. Developing a bivariate spatial association measure: An integration of Pearson’s r and Moran’s I. J Geogr Syst. 2001 Dec;3(4):369–85.

[36] Cavanaugh JE, Neath AA. “The Akaike information criterion: Background, derivation, properties, application, interpretation, and refinements,”WIREs Comput. Wiley Interdiscip Rev Comput Stat. 2019 May;11(3):e1460.

[37] “Annual Report On Trade Among The OIC Member States Executive Summary,” Istanbul-Turkey.