Fuel-mining exports and growth in a developing state: the case of the UAE

Kalaitzi, Athanasia Stylianou and Chamberlain, Trevor William (2020) Fuel-mining exports and growth in a developing state: the case of the UAE. International Journal of Energy Economics and Policy, 10 (4). 300 - 308. ISSN 2146-4553

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Abstract

This study examines the causal effects of traditional UAE exports on economic growth over the period 1981-2012, using a neoclassical production function augmented with fuel-mining exports and imports of goods and services. To investigate the existence of a long-run relationship between fuel-mining exports and economic growth, the study applies the Johansen cointegration test, while the direction of the short-run causality is examined by applying the Granger causality test in a vector error correction model framework. In addition, a modified Wald test in an augmented vector autoregressive model, developed by Toda and Yamamoto (1995), is used to investigate the existence of a long-run causality between the variables. The cointegration analysis confirms the existence of a long-run relationship between the variables, while fuel-mining exports are found to have a negative impact on economic growth. Moreover, the study finds that fuel-mining exports do not cause economic growth in the short-run or the long-run.

Item Type:	Article
Official URL:	https://econjournals.com/index.php/ijeep/index
Additional Information:	© 2020 The Authors
Divisions:	Middle East Centre
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
JEL classification:	O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C32 - Time-Series Models
Date Deposited:	25 Jun 2020 14:39
Last Modified:	18 Mar 2024 07:15
URI:	http://eprints.lse.ac.uk/id/eprint/105207

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