Industrialization Dynamics in Organization of Islamic Cooperation (OIC) Countries: Evidence from the Club Convergence Approach

The primary objective of this study is to scrutinize the industrialization patterns across 36 member states of the Organization of Islamic Cooperation (OIC) spanning from 1990 to 2021, adopting a club convergence approach. This study employed the Competitive Industrial Performance (CIP) index developed by the United Nations Industrial Development Organization. The CIP index serves as a yardstick for assessing countries' effectiveness in manufacturing and exporting industrial goods, facilitating comparisons of industrial competitiveness across nations. The empirical findings derived from the convergence methodology established by Phillips & Sul (2007, 2009) unveiled the absence of convergence in CIP among OIC countries yet delineate the existence of four distinct convergence clusters. Notably, the CIP scores of countries exerted a significant influence on the formation of these clusters, with member states within the same cluster exhibiting comparable CIP performances. This outcome underscored the persistent dual structure characterizing the OIC panel, wherein nations with lower CIP standings failed to converge toward those with higher performance levels.