Arab Journal of Administration المجلة العربية للإدارة


The aim of this study is to analyze the development of the Palestinian exports and assess the main causes behind export instability in Palestine during the period (1995-2011), and to reveal the most important effects of the export instability on the economic development in Palestine. In order to fulfill the above-mentioned aims, the researcher has constructed an econometric model to testify the hypotheses of the research, and to draw the results. The statistical results of the proposed econometric model indicated that the main causes behind the export instability were commodity and geographical concentration. The results showed that the Palestinian exports suffer from the lack of product diversification and high geographical concentration ratio with regard to non -Arab Asian Ccountries especially with Israel. The Palestinian exports were also analyzed to estimate the effect of exports on economic growth (GDP growth rate was used as an indicator). The impact of exporting raw materials, consumer goods, commodity and geographical concentration were analyzed as well. The statistical results indicated that exporting consumer goods is positively associated with economic growth, while, commodity and geographical concentration is negatively associated with economic growth. Some of the important recommendations are as follows: (1) enlarging of the production of Palestinian exports commodity. (2) Concentrating on the commodities in which Palestine enjoys comparative advantage. (3) Opening new markets abroad in order to maintain geographical diversification of Palestinian exports. (4) Exploitation of the unilateral and regional trade agreements and entering into new ones especially with those countries from where Palestine imports more. (5) Increasing the quality of Palestinian exports and using better marketing strategy in the external markets, such things can be possible by increasing competition among the production sectors and support them with the needed strategy