Tourism and Economic Growth in the United Arab Emirates: A Granger Causality Approach
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 4
Abstract
In the recent years, non-oil GDP growth has become one of the most prominent targets of oil exporting Arab countries, more specifically the Gulf Cooperation Council countries. Non-oil exports, FDI inflows and Tourism are the major source of non-oil income and key strand of economic diversification. The United Arab Emirates is regarded as the most successfully diversified GCC country. However, among the 7 emirates in the UAE, only Dubai has transited itself into a diversified Emirate owing to the existence of increasing FDI inflows and a well-developed international travel and tourism sector. The main objective of this study is to examine the relationship between the travel and tourism sector and economic diversification in the United Arab Emirates. For this purpose, Grangers Causality Test approach has been employed by using data on real GDP per capita growth and travel and tourism contribution to the GDP to test whether it has made a positive impact on the UAE government’s efforts toward the diversification of its economy. Focus has been put in line with the currently prevalent core economic issues such as the Dutch disease, rentier state, oil price volatilities, non-oil growth and economic diversification as the need of the hour to understand the rationale behind the UAE government’s strategy of transforming the economy from a traditional oil-based (rentier) economy into a major hub for global investments, trade and most importantly tourism. Data has been derived from secondary sources such as online official reports prepared by various international organizations, official websites, academic papers and publications and other internet sources. To sum up, among the major diversification policies, it has been showed that tourism plays a major role in the UAE’s structural transformation and economic growth.
Authors and Affiliations
Saima Shadab
Keywords
Related Articles
- EP ID EP410198
- DOI 10.9790/487X-2004030106.
- Views 48
- Downloads 0
Mandalika Tourism Specific Economic Zone, Lombok Tengah Regency, West Nusa Tenggara
Mandalika coastal area in Lombok Tengah Regency, West Nusa Tenggara has been declared as one of the ten national tourism destination priority. As far, there are few scientific documents to describes the area, in which it...
Technological Capability, Innovativeness and the Performance of Manufacturing Small and Medium Enterprises (SMEs) in Developing Economies of Africa
The contemporary strategic management framework is unable to fully address the questions concerning the role of technological capability in a complex competitive and dynamic environment. Consequently, howmanufacturing SM...
Macro Environment of Commercial Banking in Developing Countries - Are They Really Conducive in Achieving Competitiveness?
The degree of competition is an important aspect of financial sector development and, in turn, economic growth. However banks in the developing countries are competing in an environment where the financial infrastructure...
Demand Analysis of Hotel Service Quality
Service market of hotels is successively saturated. Hotels should control customers’ demands in order to attract more customers and obtain higher profits. This study adopts questionnaire survey and treats customers of Ho...
Conjunctive use of Urban Water Sources for Domestic Purposes in Harare,Zimbabwe. Systematic Review
.