Prospect and Problems of a Common Market An Empirical Examination of the OIC Countries

Abstract

The paper examines the success and failures of various economic
groupings among the OIC countries by estimating a gravity model.
The GDP of OIC is only 4.7% of world GDP; its exports are 7.28% of
world exports and its imports 6.78% of world imports. This paper
primarily presents a synthesis of the Islamic perspectives on the Islamic
Common Market (ICM) , reviews the present state of economic
integration among the contemporary Islamic countries, identifies
relevant tasks for the Islamic governments, and offers feasible recommendations
for the governments of Islamic countries within the framework
of the prevailing theories of international trade and free market.
The establishment of an Islamic Common Market would require a firm
political commitment on the part of the Member States of the OIC,
expressing their political will and a common understanding on the
coverage, extent, mechanisms and stages of implementation, as well as
modalities of realization, of such an advanced mode of economic
integration.