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

Athanasia Stylianou Kalaitzi and Trevor William Chamberlain

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

Keywords: causality; economic growth; exports; UAE (search for similar items in EconPapers)
JEL-codes: C32 F43 O47 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2020-05-01
New Economics Papers: this item is included in nep-ara, nep-ene and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in International Journal of Energy Economics and Policy, 1, May, 2020, 10(4), pp. 300 - 308. ISSN: 2146-4553

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:105207

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