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Entrepreneurship And Economic Growth In West Bank, Palestine

Author

Listed:
  • ANTON R. SABELLA

    (Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel)

  • WOJDAN A. FARRAJ

    (Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel)

  • MAISA BURBAR

    (Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel)

  • DANA QAIMARY

    (Faculty of Business and Economics, Birzeit University, Birzeit — Ramallah, West Bank, Israel)

Abstract

This paper examines the nature of the relationship between entrepreneurship and economic growth in the West Bank of the Palestinian territories that occurred post Oslo Agreement. The paper has two main objectives: first, to examine with empirical evidence the impact of entrepreneurship on economic growth; second, to explore the effect of two control variables on the relationship — checkpoints and international aid — which are unique to this particular study. Using data spanning over a course of sixteen years, various statistical methods were applied to explain the effect of variant levels of entrepreneurial activity on GDP and unemployment. The results show that contrary to a reservoir of research, entrepreneurship appeared to have no significant impact on economic growth. This can be explained by the fact entrepreneurial activity is expected to decrease as a result of growth in the economy as new jobs are created.

Suggested Citation

  • Anton R. Sabella & Wojdan A. Farraj & Maisa Burbar & Dana Qaimary, 2014. "Entrepreneurship And Economic Growth In West Bank, Palestine," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-15.
    • Handle: RePEc:wsi:jdexxx:v:19:y:2014:i:01:n:s1084946714500034
    DOI: 10.1142/S1084946714500034
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    References listed on IDEAS

    as
    1. André Stel, 2006. "Empirical Analysis of Entrepreneurship and Economic Growth," International Studies in Entrepreneurship, Springer, number 978-0-387-29419-3, December.
    2. André van Stel & David Storey & Chantal Hartog, 2010. "Institutions and Entrepreneurship: The Role of The Rule of Law," Scales Research Reports H201003, EIM Business and Policy Research.
    3. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    4. Wim Naudé, 2008. "Entrepreneurship in Economic Development," WIDER Working Paper Series RP2008-20, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Zrar Mohsin Mohammadali & Sabir Sadiq Abdulkhaliq, 2019. "Prospects And Challenges Of Entrepreneurship Development In The Kurdistan Region Of Iraq: An Overview," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 7(2), pages 4-16, December.
    2. Mekonnen Bogale Abegaz & Kenenisa Lemi Debela & Reta Megersa Hundie, 2023. "The effect of governance on entrepreneurship: from all income economies perspective," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-18, December.
    3. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    4. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.

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