Government Spending and Non-Oil Economic Growth in the UAE
The present paper studies empirically the relationship between government spending and non-oil economic growth in the UAE for the last four decades by using the vector autoregression (VAR) approach. The findings of the study suggest that the implementation of expansionary policy, through the intensi...
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| Format: | Article |
| Language: | English |
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Sciendo
2019-01-01
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| Series: | Economics and Business |
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| Online Access: | https://doi.org/10.2478/eb-2019-0006 |
| _version_ | 1797965203124518912 |
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| author | Ibrahim Carole |
| author_facet | Ibrahim Carole |
| author_sort | Ibrahim Carole |
| collection | DOAJ |
| description | The present paper studies empirically the relationship between government spending and non-oil economic growth in the UAE for the last four decades by using the vector autoregression (VAR) approach. The findings of the study suggest that the implementation of expansionary policy, through the intensification of current and development public expenditures, induces an increase in the non-oil economic growth during the subsequent periods of the government spending shock. Thus, the implementation of expansionary government spending stimulates the UAE economy, especially during recession periods. The study suggests that policymakers should concentrate their spending on the right projects, as well as on research and development. Moreover, they should channel their transfers and subsidies to the productive sectors, and they should ensure that higher productivity in public institutions is in conjunction with the rise in wages and salaries to achieve sustainable economic growth. |
| first_indexed | 2024-04-11T01:56:18Z |
| format | Article |
| id | doaj.art-6bd50e16a6d642518c1d3bc5a291a681 |
| institution | Directory Open Access Journal |
| issn | 1407-7337 2256-0394 |
| language | English |
| last_indexed | 2024-04-11T01:56:18Z |
| publishDate | 2019-01-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business |
| spelling | doaj.art-6bd50e16a6d642518c1d3bc5a291a6812023-01-03T05:13:16ZengSciendoEconomics and Business1407-73372256-03942019-01-01331829310.2478/eb-2019-0006eb-2019-0006Government Spending and Non-Oil Economic Growth in the UAEIbrahim Carole0Saint Joseph University, Dubai, United Arab Emirates; American University in Dubai, Dubai, United Arab EmiratesThe present paper studies empirically the relationship between government spending and non-oil economic growth in the UAE for the last four decades by using the vector autoregression (VAR) approach. The findings of the study suggest that the implementation of expansionary policy, through the intensification of current and development public expenditures, induces an increase in the non-oil economic growth during the subsequent periods of the government spending shock. Thus, the implementation of expansionary government spending stimulates the UAE economy, especially during recession periods. The study suggests that policymakers should concentrate their spending on the right projects, as well as on research and development. Moreover, they should channel their transfers and subsidies to the productive sectors, and they should ensure that higher productivity in public institutions is in conjunction with the rise in wages and salaries to achieve sustainable economic growth.https://doi.org/10.2478/eb-2019-0006current expendituresdevelopment expendituresgovernment spendingnon-oil economic growthunited arab emirates (uae)vector autoregression (var)e60e62h50 |
| spellingShingle | Ibrahim Carole Government Spending and Non-Oil Economic Growth in the UAE Economics and Business current expenditures development expenditures government spending non-oil economic growth united arab emirates (uae) vector autoregression (var) e60 e62 h50 |
| title | Government Spending and Non-Oil Economic Growth in the UAE |
| title_full | Government Spending and Non-Oil Economic Growth in the UAE |
| title_fullStr | Government Spending and Non-Oil Economic Growth in the UAE |
| title_full_unstemmed | Government Spending and Non-Oil Economic Growth in the UAE |
| title_short | Government Spending and Non-Oil Economic Growth in the UAE |
| title_sort | government spending and non oil economic growth in the uae |
| topic | current expenditures development expenditures government spending non-oil economic growth united arab emirates (uae) vector autoregression (var) e60 e62 h50 |
| url | https://doi.org/10.2478/eb-2019-0006 |
| work_keys_str_mv | AT ibrahimcarole governmentspendingandnonoileconomicgrowthintheuae |