TY - JOUR
T1 - Trade openness and economic development in the UAE
T2 - an asymmetric approach
AU - Al-Shayeb, Abdulrahman
AU - Hatemi-J, Abdulnasser
N1 - Publisher Copyright:
© 2016, © Emerald Group Publishing Limited.
PY - 2016
Y1 - 2016
N2 - Purpose: The purpose of this paper is to offer a review of the trade policy in the UAE. It also investigates the dynamic interaction between trade openness and GDP per capita in this emerging economy. Design/methodology/approach: The asymmetric generalized impulse response functions and the asymmetric causality tests developed by Hatemi-J are used. Findings: The results from asymmetric generalized impulse response functions indicate that a positive permanent shock in the trade openness results in a significant positive response in the cumulative sum of the positive component of the GDP per capita. Such a response is not found for the negative shocks in the trade openness. Furthermore, neither a positive nor a negative shock in the GPD per capita results in any significant response in the trade openness. These empirical findings are also supported by the implemented asymmetric causality tests. Originality/value: This is the first attempt that investigates the impact of trade openness on economic performance in the UAE. Unlike previous literature on the topic, this paper allows for asymmetric impacts in the empirical model.
AB - Purpose: The purpose of this paper is to offer a review of the trade policy in the UAE. It also investigates the dynamic interaction between trade openness and GDP per capita in this emerging economy. Design/methodology/approach: The asymmetric generalized impulse response functions and the asymmetric causality tests developed by Hatemi-J are used. Findings: The results from asymmetric generalized impulse response functions indicate that a positive permanent shock in the trade openness results in a significant positive response in the cumulative sum of the positive component of the GDP per capita. Such a response is not found for the negative shocks in the trade openness. Furthermore, neither a positive nor a negative shock in the GPD per capita results in any significant response in the trade openness. These empirical findings are also supported by the implemented asymmetric causality tests. Originality/value: This is the first attempt that investigates the impact of trade openness on economic performance in the UAE. Unlike previous literature on the topic, this paper allows for asymmetric impacts in the empirical model.
KW - Asymmetric causality
KW - Asymmetric impulses
KW - GDP per capita
KW - The UAE
KW - Trade openness
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U2 - 10.1108/JES-06-2015-0094
DO - 10.1108/JES-06-2015-0094
M3 - Article
AN - SCOPUS:84985011756
SN - 0144-3585
VL - 43
SP - 587
EP - 597
JO - Journal of Economic Studies
JF - Journal of Economic Studies
IS - 4
ER -