—This paper examines the feedback effect in the
trade relationship between UAE and its three top trading
partners (Japan, India and Mainland China). a
simultaneous-equations model with double log form has been
tested and used in order to analyse the role played by the
interaction of trade and the degree of feedback effect. The
results of the econometric model confirm that there is evidence
of partial feedback effect in UAE trade with each of Japan and
China. UAE's imports from its partner are subject to its income
with a partial adjustment mechanism. the short-term elasticity
of UAE imports with respect to its income seems to be higher
(e.g. ranging from .70 to 1.8) in all cases .
—Feedback effect, top trading partner, UAE.
A. F. Yahia is with department of economics, faculty of economics and
commerce , Almergibe University, Al- Kumis, Libya (e-mail:
Cite:Abdusalam F. Yahia, "An Empirical Examination of Feedback Effect in the Trade Relationship Between UAE and Trading Partners," International Journal of Trade, Economics and Finance vol.3, no.6, pp. 432-435, 2012.