Concentration rate of source country diversification in imports of Organization of Islamic Cooperation countries, measured by Herfindahl-Hirschman and entropy indices

Geopolitical tensions, supply chain disruptions, and increasing economic uncertainties in global trade have made source country diversification in imports a critical issue for many economies. Especially for developing countries, building a resilient and sustainable trade structure is no longer optional but a strategic imperative. In this context, import dependence on a limited number of countries poses a significant risk to economic security. This study aims to measure the level of source country diversification in the imports of the member states of the Organisation of Islamic Cooperation (OIC) and to comparatively analyse import concentration levels among these countries. The scope of the study includes the import data of 31 member countries of the OIC for which complete data were available for the period between 2014 and 2023. The data were obtained from the Trade Map database. The methodological framework includes the Herfindahl-Hirschman Index (HHI), Entropy Index (EI), CR4, and CR8 concentration ratios. These indices are used to assess the extent to which each country's imports are diversified or concentrated over time. The findings reveal that countries such as Turkmenistan, Somalia, and Kyrgyzstan exhibit high levels of import concentration, whereas Tunisia, Morocco, and Jordan display moderate or low concentration levels. Furthermore, the fact that countries with a colonial past tend to show higher concentration levels is identified as a notable pattern. The study concludes that many OIC countries face structural imbalances in their import portfolios and that long-term and structural strategies for source country diversification are essential.