Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2024-02-39.html
   My bibliography  Save this article

High-Technology Exports, Foreign Direct Investment, Renewable Energy Consumption and Economic Growth: Evidence from the United Arab Emirates

Author

Listed:
  • Saima Shadab

    (Aligarh Muslim University, India,)

  • Firoz Alam

    (Department of Finance, College of Administrative and Finance Sciences, Saudi Electronic University, Riyadh, Saudi Arabia.)

Abstract
Various attempts have been made to undercover the relationship between the UAE’s economic growth, FDI, and renewable energy, with inadequate focus on the role of high technology exports in the UAE. This paper, therefore, examines the short and long-term relationship between high-technology exports, foreign direct investment, renewable energy, and economic growth in the UAE for the period 1991-2020. For this purpose, the autoregressive distributed lag bounds testing approach to cointegration has been employed in this study. The short and long-run empirics reveal a positive and significant relationship between high technology exports and the UAE’s economic growth. Conversely, a significant negative relationship exists between renewable energy consumption and economic growth. Among various important findings, the long-run causality results show a unidirectional causality exists from high-tech exports to the UAE’s economic growth. Further, a bi-directional causality exists between FDI and high-tech exports, that in turn promotes economic growth of the UAE. Based on the overall results, the study provides important policy recommendations.

Suggested Citation

  • Saima Shadab & Firoz Alam, 2024. "High-Technology Exports, Foreign Direct Investment, Renewable Energy Consumption and Economic Growth: Evidence from the United Arab Emirates," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 394-401, March.
    • Handle: RePEc:eco:journ2:2024-02-39
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/ijeep/article/download/15188/7777/36363
    Download Restriction: no
    File URL: https://econjournals.com/index.php/ijeep/article/view/15188/7777
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ejike Udeogu & Shampa Roy-Mukherjee & Uzochukwu Amakom, 2021. "Does Increasing Product Complexity and Diversity Cause Economic Growth in the Long-Run? A GMM Panel VAR Evidence," SAGE Open, , vol. 11(3), pages 21582440211, August.
    2. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "Reprint of The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(8).
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Ibolya Török & József Benedek & Manuel Gómez-Zaldívar, 2022. "Quantifying Subnational Economic Complexity: Evidence from Romania," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
    5. Koch, Philipp, 2021. "Economic complexity and growth: Can value-added exports better explain the link?," Economics Letters, Elsevier, vol. 198(C).
    6. Lall, Sanjaya, 2000. "Export performance, technological upgrading and foreign direct investment strategies in the Asian newly industrializing economies: with special reference to Singapur," Desarrollo Productivo 4461, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    8. Felipe Orsolin Teixeira & Fabricio Jose Missio & Ricardo Dathein, 2022. "Economic complexity, structural transformation and economic growth in a regional context: Evidence for Brazil," PSL Quarterly Review, Economia civile, vol. 75(300), pages 63-79.
    9. Thi Thanh Mai Le & Le Duc Niem & Taegi Kim, 2022. "Economic Complexity and Economic Development in ASEAN Countries," International Economic Journal, Taylor & Francis Journals, vol. 36(4), pages 556-568, October.
    10. Rida Waheed & Suleman Sarwar & Zouheir Mighri, 2021. "Role of high technology exports for energy efficiency: Empirical evidence in the context of Gulf Cooperation Council countries," Energy & Environment, , vol. 32(5), pages 803-819, August.
    11. Britto, Gustavo & Coelho, Clara & Freitas, Elton & Romero, João Prates, 2019. "The great divide: economic complexity and development paths in Brazil and the Republic of Korea," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    12. Carla Sciarra & Guido Chiarotti & Luca Ridolfi & Francesco Laio, 2020. "Reconciling contrasting views on economic complexity," Nature Communications, Nature, vol. 11(1), pages 1-10, December.
    13. Shujin Zhu & Renyu Li, 2017. "Economic complexity, human capital and economic growth: empirical research based on cross-country panel data," Applied Economics, Taylor & Francis Journals, vol. 49(38), pages 3815-3828, August.
    14. Benjamin Azembila Asunka & Zhiqiang Ma & Mingxing Li & Nelson Amowine & Oswin Aganda Anaba & Haoyang Xie & Weijun Hu, 2021. "Analysis of the causal effects of imports and foreign direct investments on indigenous innovation in developing countries," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 17(5), pages 1315-1335, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Destek, Mehmet Akif & Hossain, Mohammad Razib & Aydın, Sercan & Shakib, Mohammed & Destek, Gamze, 2023. "Investigating the role of economic complexity in evading the resource curse," Resources Policy, Elsevier, vol. 86(PB).
    2. Johannes W. Fedderke & John M. Luiz, 2005. "Does Human Generate Social and Institutional Capital? Exploring Evidence From Time Series Data in a Middle Income Country," Working Papers 029, Economic Research Southern Africa.
    3. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    4. Sushil Kumar Haldar, 2009. "Economic Growth in India Revisited," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(1), pages 105-126, January.
    5. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    6. Setareh Shirkhani & Sami Fethi & Andrew Adewale Alola, 2021. "Tourism-Related Loans as a Driver of a Small Island Economy: A Case of Northern Cyprus," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    7. Muhammad Shahid & Rukhsana Kalim, 2020. "Decentralized Tax Revenue, Institutional Complementarity and Economic Growth: A Time Series Analysis of Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 25-33.
    8. Nordlund, Carl, 2023. "Transformations, trajectories and similarities of national production structures: a comparative fingerprinting approach," SocArXiv 6byxh, Center for Open Science.
    9. Nour Mohamad Fayad, 2024. "The Causality Between Corruption and Economic Growth in MENA Countries: A Dynamic Panel-Data Analysis," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 14(1), pages 28-49.
    10. Naeem AKRAM*, 2017. "Role of Public Debt in Economic Growth of Sri Lanka: An ARDL Approach," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(2), pages 189-212.
    11. Cheah, Chee Keong & Masih, Mansur, 2017. "Does the growth of islamic bank financing depend on stock market growth? evidence from Malaysia," MPRA Paper 106192, University Library of Munich, Germany.
    12. Saten Kumar & Gail Pacheco, 2010. "What Determines the Long run Growth in Kenya?," EERI Research Paper Series EERI_RP_2010_16, Economics and Econometrics Research Institute (EERI), Brussels.
    13. Senay, Acikgöz & Ali, Mohamed Sami Ben & Mert, Merter, 2017. "Sources of economic growth in MENA countries: A Harrod-neutral technological progress identification framework," Economics Discussion Papers 2017-4, Kiel Institute for the World Economy (IfW Kiel).
    14. Rasool, Samma Faiz & Zaman, Shah & Jehan, Noor & Chin, Tachia & Khan, Saleem & Zaman, Qamar uz, 2022. "Investigating the role of the tech industry, renewable energy, and urbanization in sustainable environment: Policy directions in the context of developing economies," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    15. Singh, Tarlok, 2010. "Does domestic saving cause economic growth? A time-series evidence from India," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 231-253, March.
    16. Huntington, Hillard & Liddle, Brantley, 2022. "How energy prices shape OECD economic growth: Panel evidence from multiple decades," Energy Economics, Elsevier, vol. 111(C).
    17. Najla Tharman Almutairi, 2024. "Does Investment in Human Capital via Education Stimulate Economic Growth in an Oil-Rich Country? A Case Study of Saudi Arabia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2933-2955, March.
    18. Moutinho, Victor & Santos de Oliveira, Helena M. & Viana Espinosa de Oliveira, Henrique & Puime Guillén, Félix, 2023. "The augmented and integrative model of economic growth: Theoretical and empirical evidence from USA," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    19. Simón Sosvilla-Rivero & Javier Alonso Meseguer, 2005. "Estimación de una función de producción MRW para la economía española, 1910-1995," Investigaciones Economicas, Fundación SEPI, vol. 29(3), pages 609-624, September.
    20. Boachie, Micheal Kofi, 2015. "Effect of health on economic growth in Ghana:An application of ARDL bounds test to cointegration," MPRA Paper 67201, University Library of Munich, Germany.

    More about this item

    Keywords

    High Technology Exports; Foreign Direct Investment; Renewable Energy; Economic Growth;
    All these keywords.

    JEL classification:

    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2024-02-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.