Productivity Growth and Technological Progress in the Palestinian Economy: Empirical Evidence from the West Bank

This study investigates firm-level productivity to identify factors determining the level of total factor productivity (TFP) for firms in the West Bank. By using a sample of 129 enterprises, the Cobb-Douglas production function and the TFP equation are estimated. Results suggest the accumulation of...

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Bibliographic Details
Published inAdvances in management and applied economics Vol. 6; no. 1; p. 69
Main Author Kashiwagi, Kenichi
Format Journal Article
LanguageEnglish
Published Athens Scientific Press International Limited 01.01.2016
Subjects
Banks
Economic development
Exports
GDP
Global economy
Gross Domestic Product
Growth rate
Human capital
Innovations
International trade
Labor market
Military occupations
Multinational corporations
Production functions
Productivity
Studies
Time series
Trade relations
West Bank
Israel
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Summary:This study investigates firm-level productivity to identify factors determining the level of total factor productivity (TFP) for firms in the West Bank. By using a sample of 129 enterprises, the Cobb-Douglas production function and the TFP equation are estimated. Results suggest the accumulation of human capital and adoption of innovative management are determining factors associate with higher TFP for firms in the West Bank. The limited access to export market under the asymmetric trade relation with Israel has a negative impact on technological progress. Owing to the scarcity of multinational enterprises, domestic firms in the West Bank are deprived of the benefits of the spillover effects of technological transfer. While the human capital accumulation is significant, the increasing wage levels of Palestinian workers due to the continuous migration to the Israeli labor market may have a negative impact by eroding the competitiveness of domestic firms in the West Bank.
ISSN:1792-7544
1792-7552