Halal development and food exports: Evidence from Malaysia and the Middle Eastern Asian Countries

Abstract

Exports remain an important growth engine for Malaysia, and the ability to maintain or improve the level of exports is a crucial factor to sustain and boost Malaysia's economic growth. Combined with extensive development in halal-related areas, especially in food production, Malaysia should be able to further intensify its exports, particularly to Islamic countries, such as the Middle Eastern Asian Countries (MEACs). Whether or not halal development is contributing to the expansion of exports is yet to be researched. Therefore, this study attempts to investigate the potential role played by halal development in Malaysia on its exports. Considering this is among the earlier studies examining the implication of the halal development on exports, this study limits the scope to cover the exports of Malaysia to the MEACs only. Applying panel data approach, this study found limited evidence that halal industry has played role in promoting Malaysian food exports to MEACs.