Exports and its effects on the economic development in Palestine using ARDL model

Abstract

The study amid to estimate the effect exports on economic development in Palestine during the period (1995-2017). The study used Autoregressive Distributed Lag Model: ARDL to estimate the relationship between the exports and economic development on Palestine. The study concluded with a number of results such as the long term balance relationship (cointegration) trending from exports to economic development, And the existence of positive relationship between exports and economic development in Palestine during the period (1994-2017), where the coefficient of export regression (0.49), which means that the increase of exports by 100% will increase economic development by 49%. Based on the results of the study, the study recommended Adopting a policy export promotion by directing economic resources to establish productive industries capable of entering foreign markets and motivating producers to benefit from the trade agreements signed between Palestine and a number of countries in the outside world.