The Impact of Construction Sector on Palestinian Economy - Case Study : ( Gaza Strip)

Abstract

The construction sector has a significant impact on Palestinian economy and the tool through which a society achieves its goal of economic growth and development. Share of the construction sector in Palestine GDP and construction sector VAD has fluctuated throughout the study period specially for Gaza Strip. The performance of construction sector is affected by some independent variables, such as, investment, foreign aid and other variable. Performance of the construction sector will affect GDP growth rate and the share of construction sector VAD in Palestine GDP. Results of time series data analysis, show that, first, there is a significant effect of investment and foreign aid on Palestine construction sector, and therefore the sector has a positive effects on GDP and value added . Second, Gaza Strip results shows that, there is a significant effect of investment on construction and very limited effect of foreign aid on construction sector in Gaza Strip.