Halal food export and Malaysia’s potential: the applicability of the gravity theory of trade

What is it about?

Purpose of this study was to investigate Malaysia’s potential to export food to key halal markets using Gravity model. Malaysia’s top 10 food exports to key halal markets from 2000-2017 were estimated using the Hausman-Taylor Modelling (HTM) technique to control for endogeneity within the model. The application of the gravity theory of trade to a halal market context provides mixed results where the distance between trading partners was not found as a trade deterrent for halal food exports to key halal markets.

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