IDEAS home Printed from https://ideas.repec.org/a/eme/jbsedp/jbsed-04-2021-0038.html
   My bibliography  Save this article

Determinants of private domestic investment in Palestine: time series analysis

Author

Listed:
  • Ibrahim M. Awad
  • Ghada K. Al-Jerashi
  • Zaid Ahmad Alabaddi

Abstract

Purpose - This empirical paper aims to examine the impact of interest rate (IR) and political instability (POLINS) on Palestine's domestic private investment. Design/methodology/approach - A set of econometric techniques of time series data are adopted to meet the study objectives. They include regression analysis, unit root tests, cointegration test, ARDL & Bound tests, VAR test and Granger causality test. Findings - The study's primary results complement the neoclassical approach, which states that the IR is negatively associated with domestic private investment. The empirical results reveal that there is no long-run relationship. Also, there is no causality between domestic investment and lending rates. Accordingly, these findings alert policymakers to draw a series of steps to minimize the IR at a minimum to stimulate investment for improved economic growth and development. Practical implications - There is still no national currency in Palestine. The Palestinian Monetary Authority (PMA) is advised to set an appropriate ratio of the IR for the currencies-in-circulation in Palestine for boosting investment and economic development. Originality/value - This paper provides new background information to both policymakers and researchers on the main determinants of investment in Palestine using econometric analysis. Accordingly, this critical issue is required to be examined in Palestine for stimulating investment.

Suggested Citation

  • Ibrahim M. Awad & Ghada K. Al-Jerashi & Zaid Ahmad Alabaddi, 2021. "Determinants of private domestic investment in Palestine: time series analysis," Journal of Business and Socio-economic Development, Emerald Group Publishing Limited, vol. 1(1), pages 71-86, June.
    • Handle: RePEc:eme:jbsedp:jbsed-04-2021-0038
    DOI: 10.1108/JBSED-04-2021-0038
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JBSED-04-2021-0038/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JBSED-04-2021-0038/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/JBSED-04-2021-0038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Obaike John Ojeka & Tajudeen Egbetunde & Gideon Oseibibi Okoduwa & Aisha Omobolanle Ojeyode & Mumuni Jimoh & Gideon Oladele Ogunbowale, 2024. "Moderating effect of institutional quality on the influence of debt on investment in sub-Saharan Africa," Future Business Journal, Springer, vol. 10(1), pages 1-17, December.
    2. Bayan Mohamad Alshaib & Abdullah Mohammad Ghazi Al khatib & Alina Cristina Nuta & Mohamad Hamra & Pradeep Mishra & Rajani Gautam & Sarfraz Hussain & Cristina Gabriela Zamfir, 2023. "Fiscal Sustainability and Its Implications for Economic Growth in Egypt: An Empirical Analysis," SAGE Open, , vol. 13(4), pages 21582440231, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jbsedp:jbsed-04-2021-0038. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.