Merchandise exports and economic growth: multivariate time series analysis for the United Arab Emirates

Kalaitzi, Athanasia S. and Chamberlain, Trevor W. (2020) Merchandise exports and economic growth: multivariate time series analysis for the United Arab Emirates. Journal of Applied Economics, 23 (1). 163 - 182. ISSN 1514-0326

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Abstract

This paper examines the validity of the export-led growth (ELG) hypothesis in the United Arab Emirates (UAE) over the period 1975–2012, using a neoclassical production function augmented with merchandise exports and imports of goods and services. The study applies the Johansen cointegration technique and dynamic ordinary least squares (DOLS) regression to confirm the existence of a long-run relationship between exports and economic growth, while the multivariate Granger causality test is applied to examine the direction of the short-run causality. In addition, the existence of long-run causality is investigated by applying a modified version of the Wald test in an augmented vector autoregressive model. The Johansen test and DOLS results confirm the existence of a long-run relationship between exports and economic growth. In addition, the study provides evidence to support the validity of the ELG hypothesis in the short-run, while no long-run causality is found to exist.

Item Type:	Article
Official URL:	https://www.tandfonline.com/toc/recs20/current
Additional Information:	© 2020 The Authors
Divisions:	Middle East Centre
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce
Date Deposited:	17 Mar 2020 16:15
Last Modified:	12 Dec 2024 02:05
URI:	http://eprints.lse.ac.uk/id/eprint/103781

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