The impact of foreign Aid on economic growth in Palestine Economy: Evidence from an ARDL model

This Thesis examines the link between Physical capital, saving, aid and Economic Growth for the Palestinian Economy. Bounds testing approaches as well as ARDL techniques are conducted for analyzing a growth model over the period 1993Q1-2013Q4. The results suggest that the physical investment is an important driver for economic growth in both the long and short- terms of the Palestinian economy. The findings also display that saving and aid don not have any impact on output growth in either the long or short- term periods whereas labor force has positive influence on economic growth in the case of the Palestinian Economy. Keywords: Economic Growth, Aid, ARDL, Corruption, Palestinian Economy