Fuel-Mining Exports and Growth in a Developing State: The Case of the UAE

Athanasia Stylianou Kalaitzi and Trevor William Chamberlain
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Athanasia Stylianou Kalaitzi: Middle East Centre, London School of Economics and Political Science, London, United Kingdom,
Trevor William Chamberlain: DeGroote School of Business, McMaster University, Hamilton, Canada

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 4, 300-308

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: Exports; Economic Growth; Causality; UAE (search for similar items in EconPapers)
JEL-codes: C32 F43 O47 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2020-04-38

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