IJSSER

Title: ANALYZING CHINA-UAE TRADE POTENTIAL UNDER THE CONTEXT OF THE BELT AND ROAD (B&R) INITIATIVE
Authors: Mugeeb Mohamed Mohamed Al-Samhi and Muheeb Mohamed Mohamed Al-Samhi
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Mugeeb Mohamed Mohamed Al-Samhi1 and Muheeb Mohamed Mohamed Al-Samhi2 1. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China 2. College of International Business , Shaanxi Normal University, Xi’an, China
MLA 8 Al-Samhi, Mugeeb Mohamed Mohamed, and Muheeb Mohamed Mohamed Al-Samhi. "ANALYZING CHINA-UAE TRADE POTENTIAL UNDER THE CONTEXT OF THE BELT AND ROAD (B&R) INITIATIVE." Int. j. of Social Science and Economic Research, vol. 5, no. 12, Dec. 2020, pp. 3759-3786, doi:10.46609/IJSSER.2020.v05i12.005. Accessed Dec. 2020. APA 6 Al-Samhi, M., & Al-Samhi, M. (2020, December). ANALYZING CHINA-UAE TRADE POTENTIAL UNDER THE CONTEXT OF THE BELT AND ROAD (B&R) INITIATIVE. Int. j. of Social Science and Economic Research, 5(12), 3759-3786. doi:10.46609/IJSSER.2020.v05i12.005 Chicago Al-Samhi, Mugeeb Mohamed Mohamed, and Muheeb Mohamed Mohamed Al-Samhi. "ANALYZING CHINA-UAE TRADE POTENTIAL UNDER THE CONTEXT OF THE BELT AND ROAD (B&R) INITIATIVE." Int. j. of Social Science and Economic Research 5, no. 12 (December 2020), 3759-3786. Accessed December, 2020. doi:10.46609/IJSSER.2020.v05i12.005.
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Abstract: The One Belt One Road (B&R) initiative was started by China with the aim of developing a regional economic integration between Africa, Europe and Asia. The initiative has played a pivotal role in advancing China’s economic interests in different parts of the world. The project seeks to promote enhanced regional collaboration with Africa, Europe, and Asia. China’s key priority under the initiative include trade and investment cooperation with the aim of creating a conducive business setting in the three regions. The B&R initiative has facilitated improved trade relations between China and the UAE. However, there is a paucity on studies exploring the impact of the initiative on the trade structure between the two nations. In this thesis the quantitative study sought to close this research gap by focusing on the impact of the project on the trade between China and UAE. Gravity model analysis was used to determine the impact of the initiative and it emerged that there was a positive impact on the economies of both China and UAE as a result of increase GDP. The results show that China is UAE’s main supplier, accounting for 8% of total imports. Additionally, the gravity model’s R square had a value of 0.95 which implies that 95% of the variation in the data can be explained by the model. The model was also significant with a value of 0.035. By the end of 2017, the trade volume between the two countries had reached a record of 53 billion dollars. Furthermore, the two nations have benefitted not only in terms of economic growth, but also in the fields of research, cultural activities, and education. The study suggests that China and UAE should continue holding talks on how to streamline their economic policies to open new markets and opportunities for investors from both sides. The B&R project is expected to pool more resources from China’s giant economy to UAE and eventually lead to economic growth. Additionally, there is need for UAE to tap on existing opportunities within the Chinese economy such as educational research, manufacturing, and textile. Future studies should explore the impact of the B&R initiative on specific economic sectors of China and the UAE. Researchers can also investigate the collaborative measures requires to minimize the trade imbalance between the two nations in order to strengthen the cooperation arising from the initiative. Additionally, researchers can explore the social and political impact of the B&R initiative on the two partner countries.

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