The impact of Aid for Trade and institutional quality on green GDP in OIC countries

Zakaria Lacheheb and Sumia Faisal Abdulkadir

Chapter 8 in Islamic Finance and the Pursuit of Sustainable Prosperity, 2025, pp 161-179 from Edward Elgar Publishing

Abstract: This study examines the effects of Aid for Trade (AFT) and institutional quality on green GDP in Organization of Islamic Cooperation (OIC) countries from 2013 to 2021, utilizing the System GMM (SYS-GMM) estimator. Key variables analyzed include AFT, institutional quality, investment, trade openness, inflation, foreign direct investment, and population. The findings reveal a significant positive impact of AFT on green GDP, with both AFT for productive capacity building and AFT for economic infrastructure contributing positively. However, the interaction of AFT with institutional variables showed a negative effect. There was a strong, positive, yet nonlinear relationship between Green GDP and institutional quality. In contrast, inflation and trade openness negatively influenced green GDP, while investment was found to have no significant effect. These results underscore the importance of targeted AFT initiatives and robust institutional frameworks for promoting sustainable economic growth in OIC countries.

Keywords: Aid for Trade; Institutional quality; Green GDP; OIC; GMM (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035349678
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035349685.00017 (application/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:elg:eechap:24088_8

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().