The Dynamics of Human Resource Development in the UAE

As the UAE attempts to transition into a knowledge-based economy, it is important to understand how human resources need to be developed in order for this transition to be successful. As a result, we investigate the dynamics of the UAE’s human resources with a particular focus on its determinants. In this study, we use an annual data that ranges from 1975 to 2017 and all the data were obtained from the World Development Indicators (WDI) and the United Arab Emirates. In order to assess empirically, the dynamics of the HRD of the UAE, we used the ARDL bounds test to co-integration. This methodology offers several advantages compared to other co-integration methods found in the literature, which is why we have opted for its use. Based on the ARDL bounds test, all equations estimated in this study, with one exception, showed co-integration relationship between all the variables studied. The short run results show that almost all of the variables have a positive impact on the HRD of the UAE, which confirms the findings of the long run. Consequently, we can say with absolute certainty that the variables we chose for this investigation appear to move together over time. Based on the findings of this study, a main policy recommendation for enhancing HRD in the UAE is first by promoting innovation and fostering a culture of innovation coupled with invest in Smart Governance since building a more efficient and technology-driven government is essential.