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Arab Journal of Administration المجلة العربية للإدارة

Abstract

This research aimed at studying the evolution of current account deficit for the Palestinian balance of payments for the period 1994-2009, and determines its size, funding sources, trends of development and reduction mechanisms of growth. The research approach to descriptive analysis of the data relevant and issued by the Central Bureau of Statistics. Along with relying on the comparative method, for the purpose of comparing trends in the development of indicators of foreign trade, trade deficit and current account deficit of the balance of payments, using the averages in different periods under study. The research was to analyze Pearson correlation coefficients to measure the nature and degree of correlation between the trade deficit and current account deficit of the balance of payments and some macroeconomic variables, the most important are: imports, exports, the budget deficit, final consumption, gross domestic product and net current transfers from abroad. The results of correlation analysis and a correlation strong positive correlation, and significant differences between the variables mentioned the trade deficit and current account deficits of the balance of payments. Research has also shown a number of results were the most important weakness of exports to cover imports, and the adoption of the current account deficit of the balance of payments on external sources of funding, private current transfers from abroad, which played a central and decisive role in reducing the deficit, but turned into a surplus in some years. The results of correlation analysis showed a strong positive and significant correlation between the variables mentioned from one side, and the trade deficit and current account deficits of the balance of payments from other side. Research has also shown a number of results, the most important of them were weakness of exports to cover imports, and the adoption of the current account deficit of the balance of payments on external sources of funding, specially the current transfers from abroad, which played a central and decisive role in reducing the deficit, but turned into a surplus in some years. In the light of the results of the research, it has been to propose a number of mechanisms that may help in reducing the trade deficit and current account deficit of the balance of payments.

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