Halal Food and Beverage Trade: Do Restriction on Religion, Halal Certification, and OIC Membership have any Impact?

Abstract

This study determined the worth of the Halal food and beverage trade. We imposed the Poisson Pseudo-Maximum Likelihood after applying the gravity model (PPML). The economic size of trading partners, regional trade agreements, a shared border, and a shared language are determinants with a strong beneficial effect on commerce. On the other hand, the negative trade factors are the distance between trading parties, the exporting country's income, the exchange rate comparison, and landlocked trade. In the meantime, the income level of the importing nation and the colonial relationship appeared to have little impact on trade, as does OIC trade cooperation. Halal certification has a considerable beneficial influence. However, limitations on religious considerations (GRR and SHR) have a significant negative impact on trade.