Evaluation of Palestinian Commodity Exports Performance using Foreign Trade Indices (2000-2014)

Abstract

The study aimed at identifying and assessment of the Palestinian exports by using a sample of the quantitative foreign trade indices. (Concentration of exports, intra industry trade, the revealed comparative advantage, trade intensity, export specialization). It also aims at setting appropriate policies to enhance the contribution of exports into the Palestinian economy and increase its competitiveness, and to develop a commercial policy that can engage the Palestinian economy with the region and internationally, and to decrease its dependence on the Israeli economy. The researcher used the descriptive analytical method that goes well with the phenomenon and its hypotheses. Moreover, the researcher analyzed a group of Palestinian foreign trade indices to insure the accuracy of these hypotheses using Microsoft Excel 2010, SPSS was also used to examine One Sample T Test. The results of the analysis of the quantitative foreign trade indices have shown that the Palestinian exports are varied and the industrial goods have a great importance in the Palestinian economy. They have also shown distinction in the sectors of (food & live animals, beverages and tobacco, Crude materials, inedible, except fuels, Animal and vegetable oils, fats and waxes, and manufactured goods classified chiefly by material) with a revealed comparative advantage. There's also focus on a main partner "Israel" in the direction of the Palestinian trade. Furthermore, the Palestinian exports may have revealed comparative advantages in the aforementioned sectors that can specialize in markets other than the Israeli market, like Saudi Arabia, Turkey, UAE, Jordan, and Egypt. The research provided a set of recommendations including: activation of economical agreements signed by Arab countries to maximize the benefit from these agreements, and to engage the Palestinian economy within the regional and global economy, and to manufacture goods with a "Palestinian trade mark" like olive products, dates, clothes, and shoes. In addition, taking the advantage from the Arab and International support to the Palestinian cause to market these products. It is highly important to adopt a policy to encourage exports that have revealed comparative advantage.