Purpose
The purpose of this paper is to estimate the import demand function for halal meat in member countries of the Organization of Islamic Cooperation (OIC) and to suggest some policy recommendations for OIC members that can enhance intra-OIC halal meat trade.
Design/methodology/approach
By using an augmented gravity model, this study empirically estimates the major determinants of halal meat import demand in OIC member countries. Moreover, a major determinant is the difference in Islamic jurisprudence (fiqh).
Findings
The results of this study show that the variation in Islamic jurisprudence is one of the primary determinants of intra-regional trade of halal meat import demand in OIC member countries.
Research limitations/implications
Although trade flows are set up in several years and lag variables are well capable to examine trade flows, this study only includes the static nature of halal meat trade flows toward selected top 20 OIC member countries.
Practical implications
This study suggests that developing a common halal meat market and one halal certification body under the OIC can enhance intra-OIC halal meat trade, this may be a challenge given the five diverse interpretations of halal meat within Islamic jurisprudence among OIC member countries.
Originality/value
This paper identifies the role of Islamic jurisprudence (fiqh) in determining the import demand of halal meat in OIC countries, which has not been addressed in empirical literature. It also provides some policy implications to ameliorate the declining trend of intra-OIC trade flows of halal meat.
The paper examines the long run movement between Canadian dollar and US dollar exchange rates. The study uses monthly data for the period 1995:01 to 2008:08 and employs the Engle-Granger cointegration test. Our analysis suggests that the absolute purchasing power parity (PPP) does not hold, indicating no long run relationship between the observed exchange rate and PPP rate. The result shows that there is no cointegration between actual exchange rate and PPP rate, suggesting that there is no long run relationship between Canadian dollar and US dollar exchange rates. A close examination of the data shows that output prices move more slowly, and is evidence against PPP in the short run. We acknowledge that the study period may be small to capture the existence of a long run relationship. However, our regression analysis suggests that the relative price movements are significant in explaining the actual exchange rate between US and Canada.
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