This study is trying to find the variables that determine working capital for Palestinian industrial firms. We used a sample of 11 industrial firms that are listed on the Palestine Securities Exchange. We used Working Capital as the endogenous variable, and some financial and economic variables, such as cash conversion cycle, operating cash flow, leverage, firm size, return on assets, interest rate on loans, and economic growth rate, as exogenous variables.An econometric model was established and parameters were estimated based on the panel data for 11-industrial companies for eight years (2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011). The study found that the cash conversion cycle, return on assets and operating cash flow are a significant determinant and positively related to the working capital requirements, while leverage and firm size are significant but negatively related to the working capital requirements. On the other hand economic variables such as: the interest rate and real GDP growth rate has no significant impact on the working capital. These findings are consistent with several previous studies, for other countries such as Jordan, Brazil, Pakistan, India, Greece, Thailand, Cyprus and Sri Lanka. In addition, it was found that Palestinians firms maintain a sizable working capital which may be due to a long cash conversion cycle (over six months) and to conservative policies due to instable economic and political conditions.

This study aims at finding the impact of fiscal policy with its various instruments such as, current expenditures, capital expenditures, Tax revenues, non-Tax revenues, foreign assistance and value added tax revenues on economic growth in Palestine represented by the rate of growth of real GDP during the period 1996-2018. A Multiple Regression Analysis was used to build the model and test the hypothesis. The estimated results showed four of the six independent variables have a significant effect on economic growth, with current and development expenditure having a positive effect while tax and non-tax revenue having a negative effect. On the other hand, foreign aid and clearing tax by Israeli authorizations have no significant effect on economic growth, (though, the last one is significant at 10%). The study has also found that government expenditures need to be redistributed between current and development expenditures so as to increase the share of development expenditures in order to maintain a high growth rate. The paper recommends that the tax rate should be reduced on productive projects which are designed to decrease the unemployment rate and increase the rate of growth. The study has also pointed out to the significance of re-negotiating the Paris accord with the Israeli authorities so as to improve the terms of this accord, especially in the case of collecting the VAT revenues.

Most studies on the subject, if not all of them, indicated that development is impossible while Israel is still occupying the Palestinian territory. This is because Israel is still controlling more than 60% of the West Bank (Area c), and it is controlling the natural resources; as well as controlling the boarders, ports and crossing points. It has built more than 150 Settlements in Palestinian areas, and settled about 670 thousand Jewish Settlers. Israel did not implement the agreements that ware signed with the Palestinians. It has been violating all international and human rights laws. It has destroyed houses, burned mosques, and imprisoned thousands of youth, children, and women. For these reasons, several writers, speakers, and economists concluded that there is no development under occupation. This paper tries to find some ways to get out from this dilemma and to find some methods to increase income, employment and production, and decrease unemployment rate and poverty. This paper has reached some ways to make economic development through disintegrating the Palestinian economy from the Israeli economy, decreasing the dependence on strategic goods from Israel through producing commodities that can be produced locally, developing and supporting the Palestinian hospitals to decrease the remittances of Palestinian patients to Israeli hospitals, developing the productive sectors of the economy and providing a financial support to these sectors. Developing the industrial zones and increase the number of partnerships with the Palestinians living in Israel, encouraging foreign direct investment through developing the encouragement investment laws and finally through renegotiating the Paris accord with Israel.