Abstract
ABSTRACT Despite recent growth, unemployment remains high in the West Bank and Gaza and the private sector is small and underdeveloped. Using firm-level data from the World Bank’s Enterprise Survey of Gaza and the West Bank, this paper looks at firm competitiveness in the West Bank and Gaza. It shows that firms in the West Bank and Gaza are more productive than firms in other countries at similar levels of development. Firms in Gaza, however, are far less productive than firms in the West Bank. We show that this might be because the investment climate is less favorable in Gaza. Keywords West Bank and Gaza; Total Factor Productivity; Technical Efficiency; Investment Climate.
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