Entrepreneurship and economic growth in West Bank, Palestine

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.