<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The Palestinian economy is a small and open economy that is characterized with a high level of uncertainty. The purpose of this paper is to determine the effect of COVID-19 on the economic growth in Palestine through estimating the relationship between economic growth and unemployment. We will use the GDP per capita to measure economic growth and unemployment rate in Palestine. Thus we will also look at the Palestinian labor force and determine whether the job creation is successful in absorbing the rising rates of unemployment and determine how COVID-19 will affect unemployment rates. This is an effort to study where the Palestinian economy is heading and gives suggestions of how we can avoid the convergence into a Volatility Uncertainty Complexity Ambiguity environment. The data was taken from the Palestinian Central Bureau of Statistics for the period from 1995 to 2018. The time series analysis indicated that a 1 percent increase in the unemployment rate will result in a 0.356 percent decrease in the GDP per capita. Given the continuation of the Israeli occupation, the Palestinian government plays the role of “crisis management”.</p>
</abstract>

The Palestinian economy is a small and open economy that is characterized with a high level of uncertainty. The purpose of this paper is to determine the effect of COVID-19 on the economic growth in Palestine through estimating the relationship between economic growth and unemployment. We will use the GDP per capita to measure economic growth and unemployment rate in Palestine. Thus we will also look at the Palestinian labor force and determine whether the job creation is successful in absorbing the rising rates of unemployment and determine how COVID-19 will affect unemployment rates. This is an effort to study where the Palestinian economy is heading and gives suggestions of how we can avoid the convergence into a Volatility Uncertainty Complexity Ambiguity environment. The data was taken from the Palestinian Central Bureau of Statistics for the period from 1995 to 2018. The time series analysis indicated that a 1 percent increase in the unemployment rate will result in a 0.356 percent decrease in the GDP per capita. Given the continuation of the Israeli occupation, the Palestinian government plays the role of “crisis management”.

Evaluating the Effect of Covid-19 on the Palestinian Economy by Estimating the Relationship Between Economic Growth and Unemployment in Palestine

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Palestinian economy is a small and open economy that is characterized with a high level of uncertainty. The purpose of this paper is to determine the...

Evaluating the Effect of Covid-19 on the Palestinian Economy by Estimating the Relationship Between Economic Growth and Unemployment in Palestine

Published Online: Sep 27, 2021

Page range: 206 - 217

DOI: https://doi.org/10.2478/sbe-2021-0034

Keywords
COVID-19, Economic Growth, Fully Modified Least Squares Method, Palestinian Economy, Unemployment Rate

© 2021 Wisam A. Samarah, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Evaluating the Effect of Covid-19 on the Palestinian Economy by Estimating the Relationship Between Economic Growth and Unemployment in Palestine

Published Online: Sep 27, 2021

Page range: 206 - 217

DOI: https://doi.org/10.2478/sbe-2021-0034

KeywordsCOVID-19, Economic Growth, Fully Modified Least Squares Method, Palestinian Economy, Unemployment Rate

© 2021 Wisam A. Samarah, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
COVID-19, Economic Growth, Fully Modified Least Squares Method, Palestinian Economy, Unemployment Rate