The Causal Effects of Trade and Technology Transfer on Human Capital and Economic Growth in the United Arab Emirates
School of Business and Management, Queen Mary University of London, Mile End Campus, London E1 4NS, UK
Sustainability 2018, 10(5), 1535; https://doi.org/10.3390/su10051535
Received: 28 February 2018 / Revised: 12 April 2018 / Accepted: 13 April 2018 / Published: 11 May 2018
(This article belongs to the Special Issue The Impact of Technological Change on Employment, Skills and Earnings)
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.
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MDPI and ACS Style
Kalaitzi, A.S. The Causal Effects of Trade and Technology Transfer on Human Capital and Economic Growth in the United Arab Emirates. Sustainability 2018, 10, 1535.
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