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.
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).
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.
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.
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.
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.
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