دور بورصة فلسطين في النمو الاقتصادي : دراسة قياسية على الفترة (1997-2015)‎

Abstract EN

This study aims at identifying the role of Palestine Stock Exchange in economic growth and the direction of the causal relationship between them in both long run and short run.

The descriptive approach and the empirical analysis of a time series were used for the study data based on the estimation of the vector error correction model of the study's independent variables which are (market capitalization rate, trading ratio and turnover ratio) of all listed companies on the Palestine Stock Exchange and their impact on the dependent variable per capita real GDP during the period 1997 to 2015.

The study reached the result that 48% of the changes in per capita real GDP is because of the independent variables; (market capitalization and trading ratio).

Also, the results indicated the presence of a balanced relationship in the long run between the study variables and that the speed of the adjustment on the short run to achieve the long run balance is 28% per year.

And the study concluded that there is a causal relationship between the study variables in the long run and that there is a unidirectional causal relationship in the short run moving from the independent variable market capitalization rate towards the dependent variable.

The study recommends the Palestinian government to activate the procedures which force joint stock companies to include their shares in the Palestine Stock Exchange in order to increase the size of the stock exchange, raise its liquidity and prevent the monopoly of specific companies to shares traded.

The study has also urged Palestine Stock Exchange to offer wider options for trading in front of investors through varying the types of traded securities and supporting setting up investment and saving funds which will attract more savings and encourage investments.

The study also recommends the Palestine Stock Exchange to create a joint plan which aims at supporting and encouraging family businesses and joint stock companies to become public shareholding companies.