Daraghma, Zahran Mohammad Ali and Raed Ali Mahmoud Iriqat. “Exploring Economy Dependence in the Middle East Using Governmental Accounting Indicators: The Case of Palestine, Jordan & Israel.” International Business Research 9.1 (2016): 154-64.
This paper aims at examining the causality between Palestine, Jordan, and Israel economics using three macroeconomic (governmental accounting) measurement indices: Gross Domestic Product [GDP], Inflation Rate [IR] and Unemployment Rate [UR]. In order to achieve this purpose, this manuscript employs a macroeconomic time series analysis on data gathered in Palestine, Jordan, and Israel from 1997-2014. The paper employs a variety of econometric statistical methods (e.g. descriptive statistics, correlation tests, ordinary least squares, and Granger causality test). The findings of this paper statistically support the notion that both GDP in Israel and GDP in Jordan effects the Palestinian GDP. These findings put an emphasis on the dependency of the Palestinian economy on both the Jordanian and Israeli economies. Furthermore, in lieu of the findings, this study recommends that fiscal policy makers in Palestine exert serious efforts to attract additional foreign and expatriate investments, attempt to create a stable and attractive entrepreneurial and investment climate, and build national support for local products and services to minimize the interdependence. These recommendation could inspire greater confidence in the Palestinian economy and help create a better investment climate.
By studying two Middle Eastern cases, Israel and Turkey, this study seeks to understand how countries with chronically high inflation achieve permanent stabilization. It is argued that each case of successful stabilization is facilitated by a combination of favourable political conditions. Having an acute crisis is a necessary though not a sufficient condition. It is argued that what politically seems to help most is the creation of ‘social and political consensus’. A wide support for stabilization is more likely if the stabilization plan distributes the costs of stabilization more equally. Skilful leaders also help build consensus and they are more important where other conditions are unfavourable. All these conditions were instrumental in the case of Israel, which is a stable and established democracy. The Turkish case demonstrates that if stabilization is initiated without a consensus, it would prove to be a political disaster for the implementing government. However, rapid positive economic results and favourable political changes may later contribute to creating political and social support for stabilization. In fact, for stabilization to be successful, consensus in the medium term is as or even more important than consensus in the short term.