The Role of Democracy and Governance in the Enhancement of Indonesian Exports to the Organization of the Islamic Cooperation (OIC) Countries

Aditya Yogatama () and Fithra Hastiadi

No 201504, Working Papers in Economics and Business from Faculty of Economics and Business, University of Indonesia

Abstract: The formulation of new OIC Charter at the 11 th OIC Summit in Dakar, 2008, has became the momentum for OIC countries to reassert the importance of democracy and institutional reform in promoting economic and trade cooperation among its members. This study aims to explore the role of democracy and governance in the enhancement of Indonesian exports to the OIC countries during 1998-2012 using augmented gravity model. The results showed that both democracy and governance in Indonesia have positive and significant effect in enhancing Indonesian exports to the OIC countries. While the governance in OIC countries also has positive and significant effect in improving Indonesian exports. On the other hand, democracy in OIC countries has negative and significant effect on the same matter, because lower income OIC countries tend to implement closed trade policy.

Keywords: Democracy; Governance; Exports; Indonesia; OIC (search for similar items in EconPapers)
JEL-codes: F14 H11 P33 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2015-07, Revised 2015-07
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://econ.feb.ui.ac.id/wp-content/uploads/2015/10/201504.pdf First version, 2015 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to econ.feb.ui.ac.id:443 (Bad file descriptor) (http://econ.feb.ui.ac.id/wp-content/uploads/2015/10/201504.pdf [301 Moved Permanently]--> https://econ.feb.ui.ac.id/wp-content/uploads/2015/10/201504.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpecbs:201504

Access Statistics for this paper

More papers in Working Papers in Economics and Business from Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Halley Yudhistira ( this e-mail address is bad, please contact ).