The Impact of Islamic Trade Agreements on Solar Panel Manufacturing: Mediating Role of Tariff Reduction Policies
Abstract
This paper analyzes the effect of Islamic trade agreements on the solar panel manufacturing sector in the South Asian region, paying particular attention to the mediating role of tariff reduction policies within the manufacturing sector. Achieving a trade agreement compatible with a developing region’s economy is crucial as it offers a comprehensive understanding of the impact the agreement has on green industries. The study employed a quantitative approach where data was collected from 421 valid respondents representing pertinent stakeholders from the manufacturing industry. Structural equation modeling was utilized to assess the direct impacts that Islamic trade agreements have on manufacturing performance and the indirect impacts that are mediated through tariff reduction policies. The results indicate that solar panel manufacturing under Islamic trade agreements is favorable, due to policies on tariff reductions providing significant mediating effects by promoting constructively lower trade barriers and greater cooperation among businesses from different nations. The research demonstrates the need for policy coherence to enable the growth of renewable energy manufacturing sectors within Islamic economic frameworks in South Asia. This study aims to assist policymakers and industries build sustainable developmental plans to restructure trade and tariff policies for more sustainable industrial growth.
References
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Kamel, M., Aleya, S., Almagharbeh, W. T., Aleya, L., & Abdel-Daim, M. M. (2025). The emergence of highly pathogenic avian influenza H5N1 in dairy cattle: implications for public health, animal health, and pandemic preparedness. European Journal of Clinical Microbiology & Infectious Diseases, 1-17.
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Rehman, F. U., Islam, M. M., & Raza, S. A. (2023). Does disaggregate energy consumption matter to export sophistication and diversification in OECD countries? A robust panel model analysis. Renewable Energy, 206, 274-284.
Sun, Y., Guan, W., Cao, Y., & Bao, Q. (2022). Role of green finance policy in renewable energy deployment for carbon neutrality: evidence from China. Renewable Energy, 197, 643-653.
Saleh, Z. T., Aslanoğlu, A., Almagharbeh, W. T., Fadila, D. E. S., Nagoor Thangam, M. M., Al‐Dgheim, R., … & Ebeid, I. A. (2025). Reducing sedentary behavior improves depressive symptoms among patients with heart failure enrolled in a home‐based mobile health app cardiac rehabilitation. Journal of Nursing Scholarship, 57(3), 394-403.
Subih, M., Elshatarat, R. A., Sawalha, M. A., Almarwani, A. M., Alhadidi, M., Alrahahleh, M., … & Mohamed, N. A. (2024). Exploring the Impact of Cardiac Rehabilitation Programs on Health-Related Quality of Life and physiological outcomes in patients Post Coronary artery bypass grafts: a systematic review. Reviews in Cardiovascular Medicine, 25(4), 145.
Yu, J., Saydaliev, H. B., Liu, Z., Nazar, R., & Ali, S. (2022). The asymmetric nexus of solar energy and environmental quality: Evidence from Top-10 solar energy-consuming countries. Energy, 247, 123381.
Yacoub, M. I., Aslanoğlu, A., Khraim, F., Alsharawneh, A., Abdelkader, R., Almagharbeh, W. T., … & Saleh, Z. T. (2025). Comparing E-Cigarettes and traditional cigarettes in relation to myocardial infarction, arrhythmias, and sudden cardiac death: a systematic review and meta-analysis. Biological Research For Nursing, 27(1), 168-185.
Zhao, S., He, X., & Faxritdinovna, K. U. (2023). Does industrial structure changes matter in renewable energy development? Mediating role of green finance development. Renewable Energy, 214, 350-358.
Zhang, Y. (2023). Impact of green finance and environmental protection on green economic recovery in South Asian economies: mediating role of FinTech. Economic Change and Restructuring, 56(3), 2069-2086.
Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do green banking activities improve the banks’ environmental performance? The mediating effect of green financing. Sustainability, 14(2), 989.
Al Murfie, H., Syahrani, L., Ripasada, M. A., Kamal, N. F., & Nabila, R. (2023). Safeguard Measures on Imports of Solar Cells and Modules. JLAST: Journal of Law and Social Transformation, 1(2).
Alsharawneh, A., Sawalha, M., Tabar, N. A., Elshatarat, R. A., Almarwani, A. M., Saleh, Z. T., … & Eltayeb, M. M. (2024). Impact of triage nurses’ recognition of acute coronary syndrome on patients’ clinical outcomes: A retrospective study. Heart & Lung, 68, 60-67.
Ali, S., Yan, Q., Irfan, M., Ameer, W., Atchike, D. W., & Acevedo-Duque, Á. (2022). Green investment for sustainable business development: the influence of policy instruments on solar technology adoption. Frontiers in Energy Research, 10, 874824.
Aldarawsheh, A. A., Saifan, A. R., Sawalha, M. A., Assaf, E. A., Alrimawi, I., Elshatarat, R. A., … & Eltayeb, M. M. (2024). Exploring the causes and consequences of non-nursing tasks among nurses in Jordan: An in-depth qualitative investigation. Applied Nursing Research, 77, 151791.
Al-Akash, H., Aldarawsheh, A., Elshatarat, R., Sawalha, M., Saifan, A., Al-Nsair, N., … & Eltayeb, M. (2024). “We do others’ Jobs”: a qualitative study of non-nursing task challenges and proposed solutions. BMC nursing, 23(1), 478.
Almagharbeh, W. T. (2024). ICU Admission Day Braden Risk Assessment Score Association with the Development of Pressure Ulcers in Critically Ill Patients. Bahrain Medical Bulletin, 46(3).
Agbonselohbor, B., Aslanoğlu, A., Bilgiç, N., Alsharawneh, A., Elshatarat, R. A., Saleh, Z. T., … & Eltayeb, M. M. (2025). Associated factors of Nigerian Nurses’ Emotion regulation, perceived stress, and coping mechanism during COVID-19 Pandamic: a cross-sectional study. African Health Sciences, 25(1), 84-110.
Aristidou, N., Eames, C., Sanchez-Molina, I., Bu, X., Kosco, J., Islam, M. S., & Haque, S. A. (2017). Fast oxygen diffusion and iodide defects mediate oxygen-induced degradation of perovskite solar cells. Nature communications, 8(1), 15218.
Adams, S., & Kaffo Fotio, H. (2024). Economic integration and environmental quality: accounting for the roles of financial development, industrialization, urbanization and renewable energy. Journal of Environmental Planning and Management, 67(3), 688-713.
Ashour, A. M., Masa’deh, R., Hamaideh, S. H., Elshatarat, R. A., Yacoub, M. I., Almagharbeh, W. T., … & Eltayeb, M. M. (2024). Examining the influence of anxiety and depression on medication adherence among patients diagnosed with acute myocardial infarction. BMC psychology, 12(1), 473.
Almagharbeh, W. (2024). Evaluating pain management in older people after orthopaedic surgery–a study in Jordan. Nursing Older People, 36(6).
Almagharbeh, W. T., Alfanash, H. A., Alnawafleh, K. A., Alasmari, A. A., Alsaraireh, F. A., Dreidi, M. M., & Nashwan, A. J. (2025). Application of artificial intelligence in nursing practice: a qualitative study of Jordanian nurses’ perspectives. BMC nursing, 24(1), 92.
Chowdhury, S., Sumita, U., Islam, A., & Bedja, I. (2014). Importance of policy for energy system transformation: Diffusion of PV technology in Japan and Germany. Energy policy, 68, 285-293.
Dreidi, M., Abed, D., Salameh, H., Sbeih, I. A., Asmar, S., Salameh, S., … & Almagharbeh, W. T. (2024). The effect of self-esteem on stress and coping mechanisms among nursing students during clinical training in Palestinian universities. International Journal of Practice-based Learning in Health and Social Care, 12(1), 59-69.
Hussain, Z., Khan, A., & Ali, A. (2023). The impact of user-generated content, social interactions and virtual economies on metaverse environments. Journal of Sustainable Economics, 1(2), 34-44.
Hussain, Z., Mari, A., & Arif, M. (2023). Entrepreneurial intentions from an islamic perspective: A case study of muslim entrepreneurs in Pakistan. In Strategies and Applications of Islamic Entrepreneurship (pp. 168-183). IGI Global.
Hajdukiewicz, A., & Pera, B. (2020). International trade disputes over renewable energy—the case of the solar photovoltaic sector. Energies, 13(2), 500.
Hussain, Z. (2023). Green entrepreneurial practices among small and medium enterprises in Karachi, Pakistan. In Entrepreneurship and Green Finance Practices: Avenues for Sustainable Business Start-Ups in Asia (pp. 47-76). Emerald Publishing Limited.
Hussain, Z. (2023). Examining the impact of green marketing strategies on organizational performance and competitive advantage. NUST Business Review, 5(1), 1-18.
Kamel, M., Aleya, S., Almagharbeh, W. T., Aleya, L., & Abdel-Daim, M. M. (2025). The emergence of highly pathogenic avian influenza H5N1 in dairy cattle: implications for public health, animal health, and pandemic preparedness. European Journal of Clinical Microbiology & Infectious Diseases, 1-17.
Karim, R., Syed, R. F., & Islam, M. T. (2022). Trade protectionism & China’s international trade disputes: Renewable energy perspectives. China and WTO Review, 8(1), 107-126.
Khan, A., Hamid, A. B. A., Saad, N. M., Hussain, Z., & Arif, A. R. (2023). Effectiveness of artificial intelligence in building customer loyalty: investigating the mediating role of chatbot in the tourism sector of Pakistan. International Journal of Academic Research in Business and Social Sciences, 13(9), 657-671.
Khan, S., Murshed, M., Ozturk, I., & Khudoykulov, K. (2022). The roles of energy efficiency improvement, renewable electricity production, and financial inclusion in stimulating environmental sustainability in the Next Eleven countries. Renewable Energy, 193, 1164-1176.
Lanzetta, L., Webb, T., Zibouche, N., Liang, X., Ding, D., Min, G., … & Haque, S. A. (2021). Degradation mechanism of hybrid tin-based perovskite solar cells and the critical role of tin (IV) iodide. Nature communications, 12(1), 2853.
Li, F., Yang, C., Li, Z., & Failler, P. (2021). Does geopolitics have an impact on energy trade? Empirical research on emerging countries. Sustainability, 13(9), 5199.
Mahbub, T., Ahammad, M. F., Tarba, S. Y., & Mallick, S. Y. (2022). Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country. Energy Strategy Reviews, 41, 100865.
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879.
Rehman, F. U., Islam, M. M., & Raza, S. A. (2023). Does disaggregate energy consumption matter to export sophistication and diversification in OECD countries? A robust panel model analysis. Renewable Energy, 206, 274-284.
Sun, Y., Guan, W., Cao, Y., & Bao, Q. (2022). Role of green finance policy in renewable energy deployment for carbon neutrality: evidence from China. Renewable Energy, 197, 643-653.
Saleh, Z. T., Aslanoğlu, A., Almagharbeh, W. T., Fadila, D. E. S., Nagoor Thangam, M. M., Al‐Dgheim, R., … & Ebeid, I. A. (2025). Reducing sedentary behavior improves depressive symptoms among patients with heart failure enrolled in a home‐based mobile health app cardiac rehabilitation. Journal of Nursing Scholarship, 57(3), 394-403.
Subih, M., Elshatarat, R. A., Sawalha, M. A., Almarwani, A. M., Alhadidi, M., Alrahahleh, M., … & Mohamed, N. A. (2024). Exploring the Impact of Cardiac Rehabilitation Programs on Health-Related Quality of Life and physiological outcomes in patients Post Coronary artery bypass grafts: a systematic review. Reviews in Cardiovascular Medicine, 25(4), 145.
Yu, J., Saydaliev, H. B., Liu, Z., Nazar, R., & Ali, S. (2022). The asymmetric nexus of solar energy and environmental quality: Evidence from Top-10 solar energy-consuming countries. Energy, 247, 123381.
Yacoub, M. I., Aslanoğlu, A., Khraim, F., Alsharawneh, A., Abdelkader, R., Almagharbeh, W. T., … & Saleh, Z. T. (2025). Comparing E-Cigarettes and traditional cigarettes in relation to myocardial infarction, arrhythmias, and sudden cardiac death: a systematic review and meta-analysis. Biological Research For Nursing, 27(1), 168-185.
Zhao, S., He, X., & Faxritdinovna, K. U. (2023). Does industrial structure changes matter in renewable energy development? Mediating role of green finance development. Renewable Energy, 214, 350-358.
Zhang, Y. (2023). Impact of green finance and environmental protection on green economic recovery in South Asian economies: mediating role of FinTech. Economic Change and Restructuring, 56(3), 2069-2086.
Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do green banking activities improve the banks’ environmental performance? The mediating effect of green financing. Sustainability, 14(2), 989.
Published
2025-10-25
How to Cite
., Abdul Qadeer.
The Impact of Islamic Trade Agreements on Solar Panel Manufacturing: Mediating Role of Tariff Reduction Policies.
Hakikat: Journal of Halal Studies, [S.l.], v. 1, n. 2, p. 93-111, oct. 2025.
ISSN 3090-7683.
Available at: <https://jos.unsoed.ac.id/index.php/jhs/article/view/16158>. Date accessed: 28 may 2026.
doi: https://doi.org/10.20884/1.hakikat.2025.1.2.16158.
Section
Articles
