The Impact of Economic Growth on the Trends of Structural Transformation in the Palestinian Industrial Sector (1996-2014)

Abstract

The study aims to measure the impact of economic growth and associated changes on the structural transformation of the Palestinian industrial sector during (1996-2014).Using the ordinary least square (OLS) method to estimate the relationship between the structural transformation as dependent variable, and the independent variables in logarithmic form affected by (Hollis Chenery) model, the independent variables explained (25.2%) of the changes in the share of industrial production, and (91.2%) of the changes in the share of industrial employment, and (36.3%) of the changes in the share of industrial exports. The elasticity of transformation in the share of industrial production towards the GDP amounted to (-0.4), while the elasticity of transformation of the share of industrial employment towards the GDP amounted to (0.33), and the elasticity of transformation of the share of industrial exports towards the GDP amounted to (-0.27).