FOREIGN DIRECT INVESTMENT (FDI) ROLE ON THE ECONOMIC GROWTH IN THE UNITED ARAB EMIRATES

Abstract

Due to the recent deterioration of the global economy, economic growth (EG) has become a worldwide interest; thus, scholars must focus on this issue. Hence, this study examines the effect of FDI on the EG of the United Arab Emirates (UAE). The researchers also employed inflation, employment rate, exchange rate, and industrialization as control variables. Using the secondary data gathering approach, the researchers used the World Development Indicators (WDI) database to extract data from 1986 to 2021. The researchers additionally examine the association between variables using the Non-linear Autoregressive Distributed Lag (NARDL) technique. Results indicated that FDI, inflation, employment rate, exchange rate, and industrialization positively correlate with the UAE's economy group. The research assists policymakers in formulating FDI and industrialization-related policies for achieving a high EG.