Determinants of Intra-Trade of Islamic Sub-Saharan African Countries: A Gravity model

This study examines the determinants of intra-trade between Sub-Saharan African members of the Organization of Islamic Cooperation (SSA-OIC) and analyzes the impact of the OIC membership on intra-trade promotion through the gravity model approach for panel data during the period (2002-2016). The study showed the low indicators of international trade and trade between these countries. The gravity model results showed a significant and a positive impact of GDP, economic distance, sharing borders, language, and currency on intra-SSA-OIC trade, while population and geographical distance had a significant and negative impact. Paper’s finding also implied a significant and positive impact of the ISDB Group Trade Financing on boosting intra-SSA-OIC trade and showed that the trade preferential system among the member states of the OIC (TPS-OIC) also had a positive effect on enhancing intra-SSA-OIC trade.