The Effect of Public Sector Governance on Economic Variables in Palestine
Abstract
This study examined the effect of the public sector governance on economic variables in Palestine during the period (2002-2021). The study used both the descriptive quantitative and the standard approaches. The standard models were built to verify the effect of public sector governance on the independent variables (participation and accountability, political stability and absence of violence, government effectiveness, quality of legislation, control of corruption), and the dependent variables (economic growth, unemployment, and total investment), using the E-views 12 program. The study reached a number of results, including:
- There is a positive impact of the government's effectiveness on the Palestinian economic growth.
- There is a negative impact of participation and accountability on economic growth in Palestine.
- There is a positive impact of political stability on investment in Palestine.
- There is an effect of the quality of legislation on the total Palestinian investment.
- There is an inverse relationship between controlling corruption and the unemployment rate in Palestine.
According to the previous results, the study made many recommendations, the most important of which are: paying attention to some governance indicators that have not proven significance on macroeconomic variables, in order to support these variables, while increasing attention to some governance indicators that prove their significance and positive impact on macroeconomic variables. Another recommendation is creating social and institutional environment that supports the variables of governance to create the appropriate ground and climate for economic activity.
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