SESRIC






Economic Development Studies » Trade, Finance and Investment

The openness of markets to competition can provide a powerful incentive for allocation of resources towards their most productive use. This will not only result in improved economic performance and productivity, but also better infrastructure and stronger institutions. In particular, international trade contributes to higher levels of investment, which can enhance production, help upgrade technology and boost productivity. Increasing market size through exports generates economies of scale and makes firms more productive. Moreover, trade triggers investment that expands the ability of a country to innovate, make, and export products through enhancing competition. Investment especially into the basic infrastructure makes countries more competitive in the global economy by helping them to minimize production and transportation costs.

As many developing countries are in need of vast amount of investment to finance their developmental efforts, access to sustainable finance emerges as a key issue in the global economy. Ensuring increased amount of finance for development will not only help millions of people to escape from poverty but also will promote inclusive development where countries can achieve sustainable development. The OIC-2025 Plan of Action also stresses the critical role of trade, finance and investment in promoting intra-OIC cooperation. In this connection, the research at SESRIC pays special attention to studies on trade, investment and finance with a special emphasis on OIC Member Countries and aims to identify their relative performance, reveal key challenges faced by them, and provide policy-solutions with a view to enhance intra-OIC cooperation.