Chapter 12 Explaining Growth in an Oil-Dependent Economy: The Case of the United Arab Emirates

Determinants of High and Continuous Inflation Rates in the United Arab Emirates: A Managerial Point of View

“…As a result, this will prompt a collapse in importation prices, subsequently provide to slope downwards the inflation, however in the meantime the intensity of the exportation of non-liquefiable substances will be debilitated. Furthermore, if the dollar deteriorates this would likewise debilitate the UAE dirham towards alternate monetary forms, and the costs of importations will raise in making inflationary weights, particularly since the majority of importations originate from the comfort zone of other territory (Elhiraika and Hamed, 2006).…”

“…The approach ought to move the center from capitalizing to systemic change that involves augmenting the non-liquefiable income base, motivational structure, legitimizing authority's expenses and reassessing sponsorships, and transferring an enterprise of public ventures to private sector. Elhiraika and Hamed (2006) asserts that financial change may antagonistically influence non-liquefiable movement in the limited term, yet it is important for accomplishing reasonable development after a long period o f time. Thus, government ought to cut its spending or/and increment changes in an attempt to prevent inflation from expanding.…”

“…According to the study by Furchtgott-Roth (2007), this notion gives an organization more impetus to grow which prompts more occupations. Lastly, is the accessibility of generally modest work from surrounding Arab nations and the Indian subcontinent (Elhiraika and Hamed, 2006). Although the nation still in existence and amazingly dependent on natural resources, distribution of crude oil and natural gas outside the country still play an important role in the economy.…”

Natural resource dependence: a macroeconometric model for the United Arab Emirates

“…It is our belief that the issues tackled in Elhiraika and Hamed (2002) and Fasano and Wang (2001) can be subsumed in the context of a macroeconometric model. Our model will view the oil and nonoil sectors of the UAE economy separately.…”

“…See, for instance, Elhiraika and Hamed (2002) who examine growth in the federation. The approach however is not economy wide, in the sense of a macro model.…”