Nexus between Macroeconomic Factors and Economic Growth in Palestine: An Autoregressive Distributed Lag Approach

Mosab I. Tabash, Umar Farooq, Samir K. Safi, Muhammad Nouman Shafiq and Krzysztof Drachal
Additional contact information
Mosab I. Tabash: Department of Business Administration, College of Business, Al Ain University, Al Ain P.O. Box 64141, United Arab Emirates
Samir K. Safi: College of Business and Economics, United Arab Emirates University, Al Ain P.O. Box 15551, United Arab Emirates
Muhammad Nouman Shafiq: School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710049, China

Economies, 2022, vol. 10, issue 6, 1-14

Abstract: All countries are trying their best to achieve maximum economic prosperity through employing efficient economic strategies. Countries seem to be conscious of various factors that can potentially affect economic growth. Given that, the current study examines the impact of various macroeconomic factors on the economic growth of Palestine. By employing the large range of quarterly data spanning from 2001 to 2020, the statistical outputs of the ARDL model show that government debt, donations, government expenditures, and unemployment rate adversely impact economic growth. However, other factors including credit facilities, inflation, and total investments positively impinge upon the economic growth of Palestine. Such dynamic impacts of various macroeconomic factors display both the detrimental and growth-promoting role of macroeconomic factors in determining economic prosperity. Our analysis suggests various policy implications to economic policy officials regarding the effectiveness of various factors for economic health. It is further recommended that international agencies working in aid- and donation-intensive countries should design efficient economic policies that can help such economies in coming out from economic distress.

Keywords: ARDL; economic growth; macroeconomic factors; Palestine economy (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/10/6/145/pdf (application/pdf)
https://www.mdpi.com/2227-7099/10/6/145/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:10:y:2022:i:6:p:145-:d:840328

Access Statistics for this article

Economies is currently edited by Ms. Adore Zhou

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().