The Impacts of Public Expenditure on GDP in UAE (1990-2009)

Macroeconomics, Monetary and Fiscal Policies Journal, Vol. 4, No. 20, February 4, 2011

Posted: 2 Feb 2011 Last revised: 9 Jul 2011

See all articles by Issam A.W. Mohamed

Issam A.W. Mohamed

Al-Neelain University - Department of Economics

Date Written: February 2, 2011

Abstract

GDP represents one of the main sources of national income to the United Arab Emirates, where this contributes with not less than (90%) in gross national income of the state. Emirate of Abu Dhabi contributed between (53%-62%) in GDP during the period (1990-2009), while contributed to the Emirate of Dubai is between (24%-35%) in the GDP of the UAE during the same period, illustrated by the percentage contribution of the five other emirates combined (Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain) during the study period ranged between (3%-23%). The UAE's economy developed remarkably during the period (1990-2009) supported by the growing oil revenues, the main result of the escalation of prices in the international market and access to record levels, especially in the last years of the period in question, as well as the growth of the quantities of oil from 1990 to 2009 it which was reflected in the high pace of economic activity due to the implementation of large-scale projects public and private, where GDP rose at current prices of (125.266) billion AED in 1980 (914.300) billion AED in 2009, it all led to exceed the growth rate (630% ), in other words, the GDP of the UAE has doubled more than six times during the period (1990-2009). As a result of the analysis of econometric models, it was shown that there is a strong impact by the public expenditure on GDP as an increase in public expenditure in the UAE million dirhams lead to an increase in gross domestic product (4.159) million dirhams, and that public spending contributes to a (90%) to explain and interpret the changes that will occur in the gross domestic product. Also showed the results of econometric models estimate that there is a significant effect by the public expenditure on all sources of GDP.

Keywords: UAE, Public Expenditure, GDP

Suggested Citation

Mohamed, Issam A.W., The Impacts of Public Expenditure on GDP in UAE (1990-2009) (February 2, 2011). Macroeconomics, Monetary and Fiscal Policies Journal, Vol. 4, No. 20, February 4, 2011, Available at SSRN: https://ssrn.com/abstract=1753733

Issam A.W. Mohamed (Contact Author)

Al-Neelain University - Department of Economics ( email )

P.O. Box 12910-11111
Khartoum, Khartoum 11111
Sudan
249122548254 (Phone)

HOME PAGE: http://works.bepress.com/issamawmohamed/

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