The Impact of Manufacturing, Investment, Labor Force and Technology on Economic Growth in Palestine

Abstract

The study aims to explore the impact of manufacturing, investment, labor force, and technology on the economic growth of Palestine using Kaldor’s first law of growth and the neoclassical growth model. The study used secondary data from the World Bank Database covering the period from 2000-2020. Correlation analysis and VIF tests were conducted to explore correlations and assess multicollinearity among the variables. A linear regression model was used to measure the relationship between manufacturing output, Investment, labor force, technology, and economic growth in Palestine. The analysis showed that an increase in manufacturing output leads to an increase in economic growth. Labor force participation and technology advancement have a significantly positive impact on economic growth, while investment has a significantly negative relation to economic growth. Based on these findings, policymakers are recommended to prioritize inclusive and sustainable industrialization, enhance the business environment, reduce unemployment rates, and promote competitiveness and innovation.