تحليل العلاقة بين معدلات التضخم و الأجور الحقيقية في الاقتصاد الفلسطيني للفترة (2004-2013)‎

Abstract EN

The purpose of this paper is to determine the relationship between the average inflation rate measured by the Consumer Price Index (CPI) and the real average wage rates for the labor in the Palestinian economy.

The paper also analysis the development of this relationship for the period of 2004 to 2013.

The descriptive statistical method was adapted to analyze the data provided by the Palestinian Central Bureau of Statistics.

The paper had also dependent on the Pearson Correlation to test the hypothesis of the paper and arrive at the end results.

The correlation relationship between the two variables-the Consumer Price Index and the real wages of labor in Palestine- was analyzed for the given period at three different geographical levels.

The first geographical level included both the West Bank and Gaza Strip, the second level includes the West Bank, and finally the last includes the Gaza Strip.

The most important results of this paper were as follows : 1.

The Pearson analyzes showed the existence of a strong inverse correlation between the CPI and the real wages at the different geographical levels which was significant at the 1 % level.

The Pearson correlation was -0.945 for the Palestinian territories, -0.925 at West Bank, and -0.927 for the Gaza Strip.

2.

The average inflation rate for the Palestinian economy -measured by the CPI increases at higher rate when compared to the increase in the average nominal wage rates (daily), which was reflected by the decrease in the average real wages.