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Hebron University Research Journal-B (Humanities) - (مجلة جامعة الخليل للبحوث- ب (العلوم الانسانيه

Hebron University Research Journal-B (Humanities) - (مجلة جامعة الخليل للبحوث- ب (العلوم الانسانيه

Abstract

he aim of this research is to analyze the role of commercial banks which is presented by the volume of credit with regard to economic growth in Palestine both from the productive sectors point of view and from the Gross Domestic Product point of view during the period of ( 1994- 2013). In order to achieve such aim an econometric model has been adopted based on Cob-Douglas production function in which the impact of total banks credit granted to the economy on the economic growth in Palestine has been tested.

The empirical results of the model showed appositive relationship between commercial banks credit and the economic growth in Palestine in which the impact was 0.10% during the period of (1994-2000), and 0.001% during (2000-2005), and 0.37% during the period of (2006-2013), and 05% during the period of (1994-2013).

In the light of the above results many recommendations were suggested among them the most important one was addressed to the Palestinian Monetary Authority to pay more emphasis on its monetary policy to increase the capability of the commercial banks in collecting the savings of the society and financing the economic activities which have a vital role on the economic growth of the Palestinian economy as a whole.

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