Narrow Results

Governments and global institutions are working to enhance economic development as a key for sustainability by including disadvantaged people (including the poor, women, youth, and illiterate) in the financial system. This paper uses the World Bank Global Findex Database (2014) for 1000 Palestinians to examine the influence of individual behavior on financial inclusion in Palestine. This study used empirical methods to determine whether individual socioeconomic characteristics influence financial inclusion in Palestine. The results indicated that females were less likely to be included in financial transactions, especially transactions involving borrowing and formal accounts. Further, we learned that borrowing behavior in Palestine leans toward informal sources. Formal institutions have made remarkable efforts to develop an inclusive financial infrastructure in Palestine. However, the country’s unstable political climate continues to impede economic stability and individuals’ motivation to use formal financial resources such as credit. More efforts to specifically encourage youth, the poor, and women to use formal banking could enhance their access to financial services. Adopting Islamic financial services, and online banking would also improve financial inclusion for all of Palestine’s citizens and drive sustainable development. Further, theoretical and empirical studies of Palestine’s economic development are recommended.

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.

This study explores the relationships between bricolage, firm performance and growth opportunities in contexts characterized by extreme resource scarcity. Using a sample of 160 Palestinian female entrepreneurs as representative of entrepreneurs acting in extremely resource-deprived environments, we find that bricolage has a positive influence on firm performance. Further, as predicted in the hypotheses, the role of bricolage differs depending on the type of strategy the firm develops. When firms seek to introduce new products/services or modifications in their current products/services, a high level of bricolage hinders performance. Conversely, when firms seek to expand by introducing their current products/services in new markets and opening new locations, bricolage enhances performance. This study offers a more nuanced understanding than previous research of the role of bricolage in contexts of extreme resource constraints.

This paper investigates and identifies the channels through which external or internal monetary policy shocks can affect the real economy and inflation in Palestine. Two approaches are used: The vector error correction model and ordinary least square simple regression. In estimating the performance of these models, actual quarterly data is used between Q1 2002 and Q2 2009; for the period of Q1 1996 to Q2 2009, a mix of actual and predicted data is used. Empirical results in general indicate that monetary policy shocks have limited influence on economic activities and inflation in Palestine. However, results show that pass-through from domestic lending interest rates of the US dollar (or Jordanian dinar) is higher than for the new Israeli shekel. They reveal a presence of significant but relatively low pass-through for policy rates onto domestic lending interest rates, and therefore, on real economic activities. Israeli monetary policy has a significant impact on Palestinian real economic activities, mainly net exports and on the inflation rate. Furthermore, the exchange rate channel influences GDP by affecting wealth and net exports. Finally, political conditions have had a significant and important impact on the behavior of the Palestinian people by affecting consumption levels.

The paper traces the origin of the Middle East conflict and discusses the gradual evolution of the Israel-Palestine conflict from a historical perspective. The paper discusses the peace negotiations undertaken for the region during different periods and the contribution of the international community in reaching a compromise formula. The paper discusses the emergence and the role of Hamas and how it gained political legitimacy. The paper concludes with the views of Israel and India perspective.

This study compares the private returns to education in Palestine and Turkey over the period 2004-2008. Alhough educational enrollment ratios are similar in both countries, the labor force participation of women is much lower in Palestine: such structural differences are likely to affect labor market outcomes especially along gender lines. In both countries, the results show high returns to an additional year of education at the two-year tertiary and the university levels. The returns to education are higher for females than for males in both countries, although the gender gap is larger in Palestine than in Turkey. In Turkey, with its open borders and stronger export potential, private-sector capacity is much greater than in Palestine. Workers in Turkey earn higher returns to education in both the formal and informal private sectors than do workers in Palestine, whose labor market is dominated by the government sector and the international organizations. Overall, the results imply that years of schooling and experience explain wages better in Turkey than in Palestine, and that within Palestine they explain wages better for women samples than for men.

This study is the first to analyze wage differentials and sector choice by gender in Palestine. It uses Palestine Central Bureau of Statistics Labor Force Surveys for the years 1999, 2001, 2007, and 2010. The results show positive, although relatively low, returns to education at all levels. They indicate stark differences by gender from the viewpoint of sector choice, returns to education, and decomposition of sector and gender wage differentials. The low returns to education in Palestine tend to diminish the importance of the endowment effect in explaining the sector and gender wage gaps. Analysis of gender wage differentials shows that in the public sector, predicted log hourly wages are consistently higher for women than men, but in the private and ‘other’ sectors the results are mixed. Such wage differentials help explain why better educated women migrate toward the public sector, and those with lower educational levels are more likely to be found in the private sector.

Jordan is a small country with fewer natural resources than neighbouring countries. The financial crisis, regional turbulences, along with increasing food, power and oil prices have all put substantial pressure on Jordan’s economy. Furthermore, Jordan has been faced with rising unemployment rates that have worsened with the influx of Syrian refugees. Jordan has made important progress in promoting the country’s economic infrastructure, aided by openness to foreign trade and investments. Still, government services and finance are the main contributors to Jordan’s gross domestic product (GDP) and neither of these can be considered engine of economic growth. An enhancement of the macroeconomic and fiscal stability of Jordan through increased government revenues and the development of a diversified and competitive national economy are required.

For centuries, Palestinian lands were part of the Ottoman Empire. With the defeat of the Ottomans during World War I, the British occupied this region. The Principal Allied Powers subsequently gave the British full powers of legislation and of administration over Mandatory Palestine to create a national home for the Jewish people. In 1922, the land in question was divided. The eastern part, most of British Mandatory Palestine, was made into a new country, Jordan. In 1923, the United Kingdom ceded the Golan Heights to the French mandate. War broke out in 1947, leading to the occupation of Gaza by Egypt. In 1950, Abdullah annexed the portion of Palestine called the West Bank. In 1967, the Gaza Strip and the West Bank came under Israeli occupation. In 1993, the Oslo Accord with Israel gave Palestinians rule over the Gaza Strip and in Jericho, on the West Bank. The Palestinian Authority became the administrative body empowered to govern the Palestinian population and began its administration in May 1994. This chapter is about Palestinian territories, recognised by some countries as the State of Palestine.

This chapter explores the experiences of, and challenges faced by, women entrepreneurs in Palestine. The critical review of available literature revealed that the politically unstable context resulted in the transformation of traditional gender norms. The high level of unemployment and poverty have pushed Palestinian women to engage in entrepreneurial activities out of necessity. Nevertheless, Palestine still has a very low number of women’s entrepreneurial activities due to the structural and institutional challenges they face. Although many women are highly educated, they still face numerous barriers to entering the workforce, which have a negative impact on their human and social capital. Women entrepreneurs in Palestine not only fight the difficult political and security conditions but also patriarchal norms and structures. Therefore, they demonstrate resilience by defying their contextual embeddedness while contributing to social change. The advancements in technology and the affordability of using social media are creating more opportunities for Palestinian women to start and run businesses. This chapter contributes to the growing literature on women’s entrepreneurship in the Middle East and mainly in under-researched contexts affected by political instabilities.