Title:
The Role of (PIF) Palestinian Investment Fund in Building Competitive Advantage of Palestinian Economy

Authors:
Ooroubah Mahmoud,Yahiya Fahmawi, Firas S. Q. Barakat, Palestine

Abstract:

The purpose of this research is to apply Porter’s Diamond Model to building the competitive advantage of nations on Palestinian Economy to investigate at what phase our Economy is. As a result, we can discover that Palestine will remain a factor-driven economy, which reflects an early stage of economic development, paving its way toward investment and innovation, according to Porter’s stages of an economy building its competitive advantage. Regarding to Porter Diamond government has the pivotal role enhancing nation's competitive advantage of, we emphasize the role of the Palestinian Investment Fund as a governmental body in consolidating the competitiveness of the Palestinian economy during its investments projects. As Palestine is currently in a historical and critical phase in the way of establishing the requirements for building a Palestinian state, crucial decisions are to be made, one of which being fixing macroeconomic policy framework, where the main question to be answered in this issue will be about the shape of the relationship between the Israeli and Palestinian economies, and whether it will be a custom union in which the Palestinian and Israeli economies will be in one custom region, with unified value added taxes or with a free trade area. The results of this research on the macro and micro levels will serve as a necessary, if not adequate, base to economic and political decision makers, making the decisions that influence our economic relationship with Israel. Here we can see that having one custom region with Israel adopting the same value added tax will grant Palestinians the ability to innovate and upgrade an industry, build their competitive advantage, build cooperation between Palestine and Israel in creating industrial zones on the green line between Israeli and Palestinian borders. This will help not just with fulfilling the requirements for having a competitive advantage within the Palestinian economy on the macro and sectorial levels, but will also solve the problem of work in Israel by offering a large number of job opportunities for workers in Israel in the industrial zones being established on the border between Palestine and Israel. The major value of this dissertation is that it will act as guidance for the decision makers.

DOI: http://dx.doi.org/10.51505/ijebmr.2022.6213