Further evidence on export-led growth in the United Arab Emirates: are non-oil exports or re-exports the key to economic growth?

Kalaitzi, Athanasia and Chamberlain, Trevor W. (2019) Further evidence on export-led growth in the United Arab Emirates: are non-oil exports or re-exports the key to economic growth? Review of Middle East Economics and Finance. ISSN 1475-3685

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Abstract

This study investigates the relationships between exports and economic growth in the United Arab Emirates. Understanding these relationships is important for purposes of establishing appropriate growth and develop- ment policies and strategies. The study uses an augmented Cobb–Douglas production function to examine the causality between non-oil exports, re-exports and economic growth over the period 1981–2012. To investigate the existence of a long-run relationship between the variables, the study performs 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. A modified Wald test in an augmented vector autoregressive model is ap- plied in order to find the direction of the long-run causality. This research provides evidence in support of an indirect short-run uni-directional causality from economic growth to re-exports, through physical capital accu- mulation and imports. As for long-run causality, the results show that a bi-directional causality exists between re-exports and economic growth in the UAE.

Item Type:	Article
Official URL:	https://www.tandfonline.com/loi/rmee20
Additional Information:	© 2020 Informa UK Ltd
Divisions:	Middle East Centre
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HD Industries. Land use. Labor
Date Deposited:	25 Mar 2020 10:42
Last Modified:	12 Dec 2024 02:05
URI:	http://eprints.lse.ac.uk/id/eprint/103827

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