No Access

ENTREPRENEURSHIP AND ECONOMIC GROWTH IN WEST BANK, PALESTINE

ANTON R. SABELLA

Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel

Search for more papers by this author

WOJDAN A. FARRAJ

Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel

Search for more papers by this author

MAISA BURBAR

Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel

Search for more papers by this author

, and

DANA QAIMARY

Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel

Search for more papers by this author

https://doi.org/10.1142/S1084946714500034Cited by:24 (Source: Crossref)

Abstract

This paper examines the nature of the relationship between entrepreneurship and economic growth in the West Bank of the Palestinian territories that occurred post Oslo Agreement. The paper has two main objectives: first, to examine with empirical evidence the impact of entrepreneurship on economic growth; second, to explore the effect of two control variables on the relationship — checkpoints and international aid — which are unique to this particular study. Using data spanning over a course of sixteen years, various statistical methods were applied to explain the effect of variant levels of entrepreneurial activity on GDP and unemployment. The results show that contrary to a reservoir of research, entrepreneurship appeared to have no significant impact on economic growth. This can be explained by the fact entrepreneurial activity is expected to decrease as a result of growth in the economy as new jobs are created.

Keywords:

References

Z. J. Acs, Challenge 35(6), 38 (1992). Crossref, Google Scholar
Z. J. Acs, Innovations 97 (2006), DOI: 10.1162/itgg.2006.1.1.97. Google Scholar
Z. J. Acs and C. Armington, Regional Studies 36, 33 (2002). Google Scholar
Acs, ZJ, S Desai and LF Klapper (2008). What Does "Entrepreneurship" Data Really Shows? A Comparison of the Global Entrepreneurship Monitor and World Bank Group Datasets. Working Paper no. 4667, Development Research Group, The World Bank . Google Scholar
B. J. Ashcroft, J. H. Love and E. Malloy, Regional Studies 25, 395 (1991), DOI: 10.1080/00343409112331346597. Crossref, Google Scholar
D. B. Audretsch and M. Fritsch, Behavioral Norms, Technological Progress and Economic Dynamics: Studies in Schumpetarian Economics, eds. E. Helmstadter and M. Perlman (University of Michigan Press, Ann Arbor, 1996) pp. 137–150. Google Scholar
D. B. Audretsch and M. Fritsch, Regional Studies 36, 113 (2002), DOI: 10.1080/00343400220121909. Crossref, Google Scholar
Bianchini, R (2010). Entrepreneurship and quality of institutions of Latin America, (Master's Thesis), [www.wiwi.huberlin.de/professuren/vwl/fw/Dissertationen,_Theses_und_Seminararbeit en/dipl/MT/MT_Rafael_Bianchini.pdf] . Google Scholar
M. Carree and A. R. Thurik, Atlantic Economic Journal 26(2), 137 (1998), DOI: 10.1007/BF02299356. Crossref, Google Scholar
M. Carree and A. R. Thurik , International Handbook of Entrepreneurship Research , eds. Zoltan Acs and David B Audretsch ( Kluwer Academic Publishers , Boston/Dordrecht , 2002 ) . Google Scholar
M. Carree and A. R. Thurik, Handbook of Entrepreneurship Research, eds. D. B. Audretsch and Z. J. Acs (Kluwer Academic Publishers, Boston/Dordrecht, 2003) pp. 437–471. Crossref, Google Scholar
M. Dejardin , Entrepreneurship and Economic Growth: An Obvious Conjunction? ( University of Namur , Namur, Belgium , 2000 ) . Google Scholar
Doing Business (2013). Doing business: Smarter regulations for small and medium-size enterprises. World Bank and IFC . Google Scholar
D. Elmuti, G. Khoury and B. Abdul-Rahim, Journal of Developmental Entrepreneurship 16(2), 251 (2011), DOI: 10.1142/S1084946711001823. Link, Google Scholar
M. Fritsch, Review of Industrial Organization 11, 231 (1996), DOI: 10.1007/BF00157669. Crossref, Google Scholar
M. Fritsch, Small Business Economics 9, 437 (1997), DOI: 10.1023/A:1007942918390. Crossref, Google Scholar
M. Fritsch, Small Business Economics 30, 1 (2007), DOI: 10.1007/s11187-007-9067-9. Crossref, Google Scholar
M. Fritsch and P. Mueller, Regional Studies 38, 961 (2004), DOI: 10.1080/0034340042000280965. Crossref, Google Scholar
Global Entrepreneurship Monitor (2009) GEM-MENA regional report Cairo: International Development Research Center. [www.gemconsortium.org] . Google Scholar
C. W. J. Granger, Econometrica 37(3), 424 (1969), DOI: 10.2307/1912791. Crossref, Google Scholar
D. M. Hart , The Emergence of Entrepreneurship Policy: Governance, Startups and Growth in the U.S. Knowledge Economy , ed. D. M. Hart ( Cambridge University Press , Cambridge , 2003 ) . Crossref, Google Scholar
Hartog, C, A Van Stel and DJ Storey (2010). Institutions and Entrepreneurship: The Role of the Rule of Law. Working Paper no. H201003, EIM Research Reports . Google Scholar
M. A. Hittet al., Strategic Management Journal 22(1), 479 (2001), DOI: 10.1002/smj.196. Crossref, Google Scholar
I. M. Kirzner , Competition and Entrepreneurship ( University of Chicago Press , Chicago , 1973 ) . Google Scholar
F. H. Knight , Risk, Uncertainty and Profit ( M. Kelley , New York , 1921 ) . Google Scholar
J. A. Martinez, Entrepreneurship and Regional Development: An International Journal 17(2), 145 (2005). Crossref, Google Scholar
K. M. Murphy, A. Shleife and E. W. Vishny, The Quarterly Journal of Economics CVI, 503 (1991). Google Scholar
Naude, W (2008). Entrepreneurship in economic development. World Institute for Development Economics Research, 20 . Google Scholar
Palestine Economic Policy Research Institute (2010). Overview of the Palestinian economy, Ramallah . Google Scholar
Palestinian Central Bureau of Statistics (1996). The establishments census 1994, Ramallah . Google Scholar
Palestinian Central Bureau of Statistics (2012). Performance of the Palestinian economy, Ramallah . Google Scholar
Portland Trust, Palestinian Economic Bulletin 2011, 60. [www.portlandtrust.org/documents/pdfs/bulletins/Issue60_September_2011.pdf] . Google Scholar
Sabri, N (2008). Small Businesses and Entrepreneurs in Palestine. Working Paper Series, Birzeit University . Google Scholar
J. A. Schmitz, The Journal of Political Economy 97(3), 721 (1989). Crossref, Google Scholar
T. W. Schultz, Journal of Economic Literature 13(3), 827 (1975). Google Scholar
J. A. Schumpeter , The Theory of Economic Development ( Harvard University Press , Cambridge , 1934 ) . Google Scholar
J. A. Schumpeter , Capitalism, Socialism and Democracy ( Harper and Row , New York , 1942 ) . Google Scholar
L. Tang and P. E. Koveos, Journal of Developmental Entrepreneurship 9(2), 161 (2004). Google Scholar
R. D. Tollison, Perspectives on Public Choice, ed. D. C. Mueller (Cambridge University Press, Cambridge, 1997) pp. 506–525. Google Scholar
A. Van Stel , Empirical Analysis of Entrepreneurship and Economic Growth ( Springer , New York , 2006 ) . Crossref, Google Scholar
A. Van Stel and D. Storey, Regional Studies 38, 893 (2004), DOI: 10.1080/0034340042000280929. Crossref, Google Scholar
A. Van Stel, M. Carree and R. Thurik, Small Business Economics 24(3), 311 (2005). Crossref, Google Scholar
S. Wennekers and R. Thurik, Small Business Economics 13(1), 27 (1999), DOI: 10.1023/A:1008063200484. Crossref, Google Scholar
Wennekers, S, A Van Stel, R Thurik and P Reynolds (2005). Nascent Entrepreneurship and the Level of Economic Development. Discussion Paper no. 2005–14, Growth and Public Policy, Max Planck Institute of Economics . Google Scholar
P. K. Wong, Y. P. Ho and E. Autio, Small Business Economics 24(3), 335 (2005), DOI: 10.1007/s11187-005-2000-1. Crossref, Google Scholar