R. Valdivieso | Akateeminen Kirjakauppa

Since October 2000, the economy has been severely dislocated by the Palestinian-Israeli. While this paper discusses the economic consequences of the conflict, it also looks beyond these immediate problems to the challenges and opportunities that will face the Palestinian economy over the medium term, especially those arising from important demographic changes now underway. The West Bank and Gaza has the highest population growth in the world and the share of the population at working age is projected to rise steadily. This can provide an important boost to per capita income growth, but could also lead to a period of high unemployment or declining real wages, or both. The outcome will be largely determined by policy choices and reforms of the restrictions that hamper trade and investment today. These issues form an important theme of this paper. Other subjects dealt with include high transaction costs and their role in the economy; trade performance and policy; fiscal policy and the choice of an exchange rate regime.