Abstract
This study investigates the effects of regional economic integration on environmental quality of the Organisation of Islamic Cooperation (OIC) member countries using panel data spanning over the period of 11 years from 2010 to 2020. Using Tobit panel censored regression and Driscoll-Kraay standard errors regression model, the results indicate that regional economic integration reduces ecological footprint of OIC member countries. The results also indicates that while trade openness, real GDP per capita, and population worsen the environmental quality, foreign direct investment net inflows can improve the environmental quality of OIC regional bloc members. Based on the findings, it is recommended that OIC member countries should strengthen environmental policies by promoting green foreign direct investment inflows as they deepened regional economic integration as it has the tendency to mitigate the negative impact of environmental quality beside trade creation.
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Article Details
- Year: 2025
- Volume: 46
- Issue: 4
- Pages: 241 - 270
- Accepted: 30.11.2024
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DOI:
https://doi.org/10.5281/zenodo.17711729 -
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How to Cite?
Nashipu Thalut, Gairuzazmi M. Ghani (2025). Economic Cooperation and Environmental Sustainability in the OIC Region: A Panel Data Analysis. Journal of Economic Cooperation and Development, 46(4), 241-270. https://doi.org/10.5281/zenodo.17711729
