UAE in particular, and the development on the other hand
improves the education and education outcomes. However,
the impact of each is different and it is estimated to be
(0.0086) for the impact of education on the development in
UAE, and (0.146) for the impact of the development on
education. In other words, the increase of one unit of the
education index will create an increase of (0.0086) units of
development (respectively, 0.0086 units of HDI), while the
increase of one unit in the development (one unit of HDI)
will create an increase of (0.146) units in the education.
This result leads to the conclusion that the impact of
education on the development is less than the impact of
development on education, since there are many other factors that impact the development, among and mainly in the
UAE, these are the oil returns to the countries as well as the
fact that UAE is an attractive country for high qualified and
well-educated workforce. In addition, these are the motivations for young population and students to enroll in tertiary
education as well as the results of the large and big efforts
(and investments) by the government in adult education
which is provided free of charge for all population in different centers that cover all parts of the country. So, there is a
large percentage of literacy increase which exceeded 90%
during the last decades after it was 40%, that is, an increase
by more than 50 percentage points which is considered as
unprecedented efforts all over the world.
In addition, Table 1 shows the impact of other variables
on both the education and the development in UAE, during
the period under the analysis. The values of significant (Pvalue) in the table indicate that all the estimated coefficients
of the explanatory variables show significant impact on both
education and development in UAE during the study period.
The sign of the coefficient indicates the relationship between
the variables. If it is negative, this means that there is negative relationship, that is, the increase in the value of one
variable creates decrease in the other variable, and the positive sign means that the increase in one creates increase in
the other one. Therefore, some of the variable’ show negative impacts on the education as well as the development,
while others shows a positive impact.
All other variables used in the system equation show
positive impact on education. For example, the impact of
FDI is about (0.00001), that is, the increase of one unit of
FDI will increase the education by (0.00001) units; this is
due to the high foreign direct investment impact on education, which resulted in high number of private universities as
well as private schools, in addition to the branches of foreign
universities and international schools as discussed in the
previous section. This leads to increase in the rate of
enrollments of the student at primary, secondary, and tertiary
education institutions which consequently increases the
HDI.
The results shown in Table 1 emphases that the increase
of the FDI augments the level of the HDI by (0.00003) for
each unit of FDI increase. The same thing can be said for the
domestic investment, which has a significant impact on both
the development and education, as shown in the table.
Inflation negatively impacts both education and development
as inflation affects the income, which leads to the reduction
of the capability of the person to purchase the services,
including the education. Other variables that affect the
income and GDP such as the exports, has positive impact on
the HDI. This is due to the fact that income is one of FDI
components.
The coefficient of the education expenditure by government shows positive impact on education. That is an increase
of one unit of education expenditure will increase the education index by (0.136). This is due to mainly to the efforts
of UAE government in sharply reducing the illiterate rate
during the past years to be less than 5% by giving the
opportunity for adults to enroll in systemic educational
program; it is worth to be mentioned that more than 0.8
million of adults studied in more than 136 centers during the
last 30 years. However, the government of UAE provides
free education to all the citizens of UAE and forces all citizens in age of primary education to enroll in schools.
However, the government of UAE has also introduced
programs for scholarship for students to get higherdegrees
aboard.
Labor force variable shows insignificant impact on education and development as measured as HDI, due to the fact
that UAE is an attractive country for labor, especially the
high qualified labor force. Population shows positive impact
on development as measured by the HDI, while it has
insignificant impact on education. Although, the increase in
the total population will put high burden on the government
to provide services for the population, especially health and
education, it increases most of the components of the HDI
such as life expected age and health.
6 Conclusion
The UAE is making big progress in education and facilitates
the national and foreign private investment in education at
all levels of education. That is, more than 46% of the total
schools are private; moreover, 73.5% of the students are in
general education sector, 57.6% of students enrolled at
universities are non-national students, which means that the
UAE government helps other nations in building their
human capital.
After the independence of the UAE, the number of
schools and enrolled students increase sharply in addition to
the adult centers that have more than 0.8 million enrolled
276
A. M. Haddad
improves the education and education outcomes. However,
the impact of each is different and it is estimated to be
(0.0086) for the impact of education on the development in
UAE, and (0.146) for the impact of the development on
education. In other words, the increase of one unit of the
education index will create an increase of (0.0086) units of
development (respectively, 0.0086 units of HDI), while the
increase of one unit in the development (one unit of HDI)
will create an increase of (0.146) units in the education.
This result leads to the conclusion that the impact of
education on the development is less than the impact of
development on education, since there are many other factors that impact the development, among and mainly in the
UAE, these are the oil returns to the countries as well as the
fact that UAE is an attractive country for high qualified and
well-educated workforce. In addition, these are the motivations for young population and students to enroll in tertiary
education as well as the results of the large and big efforts
(and investments) by the government in adult education
which is provided free of charge for all population in different centers that cover all parts of the country. So, there is a
large percentage of literacy increase which exceeded 90%
during the last decades after it was 40%, that is, an increase
by more than 50 percentage points which is considered as
unprecedented efforts all over the world.
In addition, Table 1 shows the impact of other variables
on both the education and the development in UAE, during
the period under the analysis. The values of significant (Pvalue) in the table indicate that all the estimated coefficients
of the explanatory variables show significant impact on both
education and development in UAE during the study period.
The sign of the coefficient indicates the relationship between
the variables. If it is negative, this means that there is negative relationship, that is, the increase in the value of one
variable creates decrease in the other variable, and the positive sign means that the increase in one creates increase in
the other one. Therefore, some of the variable’ show negative impacts on the education as well as the development,
while others shows a positive impact.
All other variables used in the system equation show
positive impact on education. For example, the impact of
FDI is about (0.00001), that is, the increase of one unit of
FDI will increase the education by (0.00001) units; this is
due to the high foreign direct investment impact on education, which resulted in high number of private universities as
well as private schools, in addition to the branches of foreign
universities and international schools as discussed in the
previous section. This leads to increase in the rate of
enrollments of the student at primary, secondary, and tertiary
education institutions which consequently increases the
HDI.
The results shown in Table 1 emphases that the increase
of the FDI augments the level of the HDI by (0.00003) for
each unit of FDI increase. The same thing can be said for the
domestic investment, which has a significant impact on both
the development and education, as shown in the table.
Inflation negatively impacts both education and development
as inflation affects the income, which leads to the reduction
of the capability of the person to purchase the services,
including the education. Other variables that affect the
income and GDP such as the exports, has positive impact on
the HDI. This is due to the fact that income is one of FDI
components.
The coefficient of the education expenditure by government shows positive impact on education. That is an increase
of one unit of education expenditure will increase the education index by (0.136). This is due to mainly to the efforts
of UAE government in sharply reducing the illiterate rate
during the past years to be less than 5% by giving the
opportunity for adults to enroll in systemic educational
program; it is worth to be mentioned that more than 0.8
million of adults studied in more than 136 centers during the
last 30 years. However, the government of UAE provides
free education to all the citizens of UAE and forces all citizens in age of primary education to enroll in schools.
However, the government of UAE has also introduced
programs for scholarship for students to get higherdegrees
aboard.
Labor force variable shows insignificant impact on education and development as measured as HDI, due to the fact
that UAE is an attractive country for labor, especially the
high qualified labor force. Population shows positive impact
on development as measured by the HDI, while it has
insignificant impact on education. Although, the increase in
the total population will put high burden on the government
to provide services for the population, especially health and
education, it increases most of the components of the HDI
such as life expected age and health.
6 Conclusion
The UAE is making big progress in education and facilitates
the national and foreign private investment in education at
all levels of education. That is, more than 46% of the total
schools are private; moreover, 73.5% of the students are in
general education sector, 57.6% of students enrolled at
universities are non-national students, which means that the
UAE government helps other nations in building their
human capital.
After the independence of the UAE, the number of
schools and enrolled students increase sharply in addition to
the adult centers that have more than 0.8 million enrolled
276
A. M. Haddad