ВПЛИВ МАЛОГО ТА СЕРЕДНЬОГО СЕКТОРІВ ПРОМИСЛОВОСТІ НА ЕКОНОМІЧНЕ ЗРОСТАННЯ ОБ’ЄДНАНИХ АРАБСЬКИХ ЕМІРАТІВ

Abstract

A nation's socioeconomic growth is significantly impacted by its small- and medium-sized enterprises (SMEs). Jobs are created by small and medium-sized businesses, which also participate in international trade and compete with big businesses. Similar to this, in the UAE, small and medium-sized businesses play a significant role in economic development that is sustainable. The purpose of the article is to determine how small and medium-sized businesses affect economic growth in the United Arab Emirates. The subject of the study is small and medium industry sector and their influence on the economic growth of the United Arab Emirates. The methodological basis and information base of the research are current scientific and applied research, statistical information. The article uses a number of methods, including analysis, synthesis, comparison and generalization. The main hypothesis of the study was the assumption that the efficiency of economic management and the financial condition of the public sector depend on the quality of budget forecasting and planning, because they are the key to the sustainable development of socio-economic processes. Presenting main material. The results of the research method (Vector Error Correction Model VECM analysis) with the constant Dickey-Fuller test (ADF), the Johansen test for cointegration, the Granger test for causality, and the response function (IRF) for secondary data in time series for the period 1999-2019 showed that the variables of the number of firms were significantly correlated with the variables of the number of firms.The originality and practical significance of the research.Economic growth and small and medium-sized businesses are causally related in two ways. The results of the VECM analysis also demonstrate that in the short term there is a significant positive effect on the number of small and medium enterprises in lag-1 on Economic growth, in addition to the existence of a unidirectional and bidirectional causal relationship for the variable number of workers and economic growth in the United Arab Emirates.Conclusions. Economic growth, the number of small and medium-sized businesses, and their employee bases are all interconnected over the long term.