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Are Non-Primary Exports the Source for Further Economic Growth in the UAE?

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  • Kalaitzi Athanasia Stylianou

    (Middle East Centre, London School of Economics and Political Science, WC2A 2AZ, London, UK)

  • Kherfi Samer

    (Department of Economics, American University of Sharjah, Sharjah, UAE)

  • Alrousan Sahel

    (Ministry of Finance, Dubai, UAE)

  • Katsaiti Marina-Selini

    (Department of Innovation in Government and Society, United Arab Emirates University, Al Ain, UAE)

Abstract

This paper investigates whether non-primary exports directly or indirectly cause economic growth in the United Arab Emirates (UAE). This study performs the Johansen test to examine the presence of co-integration between the variables in an augmented production function. The Granger causality test is performed to investigate the short-run causality between non-primary exports and economic growth, while the long-run causality is investigated by employing the Toda and Yamamoto procedure. The empirical analysis indicates that the variables are co-integrated, and that short-run causality runs from non-primary exports to economic growth; results exhibit no evidence of direct causality from non-primary exports to economic growth in the long-run.

Suggested Citation

  • Kalaitzi Athanasia Stylianou & Kherfi Samer & Alrousan Sahel & Katsaiti Marina-Selini, 2022. "Are Non-Primary Exports the Source for Further Economic Growth in the UAE?," Review of Middle East Economics and Finance, De Gruyter, vol. 18(1), pages 29-51, April.
    • Handle: RePEc:bpj:rmeecf:v:18:y:2022:i:1:p:29-51:n:3
    DOI: 10.1515/rmeef-2021-0015
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    More about this item

    Keywords

    economic growth; non-primary exports; Granger causality; UAE;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • N0 - Economic History - - General
    • J1 - Labor and Demographic Economics - - Demographic Economics

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