The Effect of Economic Security and Foreign Trade on Economic Growth (Case Study: Selected Countries of OIC)

In this study, we have investigated the effects of variables related to the indicators of economic security and foreign trade on the Economic growth; to achieve this purpose, the econometric technique of panel data was used with co-integration method and the approach of generalized least squares (GLS), for 9 selected countries of organization of the Islamic conference (OIC), during since 2005 to 2016. Economic security indicators used include the right to protest and accountability, political stability without violence, government effectiveness, regulatory quality, rule of law and control of corruption, and foreign trade index is the sum of export and import of these countries. The results of the estimations show that the sensitivity of economic growth compared to the index of the right to protest and accountability is equal to 0.14 and respectively for the above indexes are equal to 0.65, 0.43, 0.54, 0.03 and 0.12 and also economic growth sensitivity to the foreign trade index is equal to 0.29. The obtained results indicate that the indicators of economic security and foreign trade have positive impact on the economic growth during the period of investigation.