• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2012 Vol.3(6): 432-435 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2012.V3.240

An Empirical Examination of Feedback Effect in the Trade Relationship Between UAE and Trading Partners

Abdusalam F. Yahia
Abstract—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 .

Index Terms—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: asuprince2000@yahoo.com ).

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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.

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