The nexus between export diversification, imports, capital and economic growth in the United Arab Emirates: An empirical investigation

Using the Vector Error Correction Model (VECM) and Toda-Yamamoto Causality approach, this paper investigates short-run long–run relationship between export diversification, physical human capital, imports, economic growth in UAE. The study period consideration is 1975-2017. findings obtained from VECM test confirm existence of a significant long-run Besides, Toda Yamamoto Granger results reveal that imports Granger-cause UAE’s which proves validity Import-Led Growth hypothesis for UAE economy long-run. also unidirectional causal exists diversification to This finding indicates success attaining reduction oil–dependency.