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The Causal Effects of Trade and Technology Transfer on Human Capital and Economic Growth in the United Arab Emirates

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  • Athanasia S. Kalaitzi

    (School of Business and Management, Queen Mary University of London, Mile End Campus, London E1 4NS, UK)

Abstract

This research empirically investigates the causality between trade, technology, human capital and economic growth in the United Arab Emirates (UAE) over the period 1980–2016. To investigate the existence of a long-run relationship between the variables, this 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 (VECM) framework. Moreover, a modified Wald test in an augmented Vector Autoregressive Model is applied in order to find the direction of the long-run causality. This research provides evidence to support a short-run bi-directional causality between primary imports and economic growth, while an indirect causality runs from manufactured imports and human capital to economic growth, through exports and primary imports. Empirical results do not provide evidence of either an Import-Led growth (ILG) or Export-Led Growth (ELG) hypothesis in the long-run, while no causality runs from primary imports, manufactured imports or exports to human capital.

Suggested Citation

  • Athanasia S. Kalaitzi, 2018. "The Causal Effects of Trade and Technology Transfer on Human Capital and Economic Growth in the United Arab Emirates," Sustainability, MDPI, vol. 10(5), pages 1-15, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1535-:d:145917
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    Cited by:

    1. Athanasia Stylianou Kalaitzi & Trevor W. Chamberlain, 2023. "Manufactured exports, disaggregated imports and economic growth: the case of Kuwait," Economic Change and Restructuring, Springer, vol. 56(2), pages 919-940, April.
    2. Kalaitzi Athanasia S. & 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, De Gruyter, vol. 15(2), pages 1-15, August.
    3. 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.
    4. Kalaitzi, Athanasia & 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?," LSE Research Online Documents on Economics 103827, London School of Economics and Political Science, LSE Library.
    5. Sumbal Fatima & Bateer Chen & Muhammad Ramzan & Qamar Abbas, 2020. "The Nexus Between Trade Openness and GDP Growth: Analyzing the Role of Human Capital Accumulation," SAGE Open, , vol. 10(4), pages 21582440209, November.

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