Abstract
The purpose of this paper is to determine whether the current water supply can aid in achieving economic growth in Palestine through the agricultural sector. Thus an attempt was made to answer the question whether it is worthwhile for the Palestinian Authority (PA) to invest in the agricultural sector to achieve a certain level of sustainable development. A time-series regression analysis is performed to investigate whether the current amount of water can sustain economic growth in Palestine for 1998-2018. Findings have indicated that there is no relationship between the agricultural sector and the two sources of water. Meanwhile, there is a cointegration relationship between the agricultural sector and the spring water. Accordingly, water is not achieving economic growth in Palestine due to a shrinking agricultural sector. Moreover, the Palestinian agricultural sector faces several challenges during the expansion period, most importantly in terms of the insufficient subsidies provided to the Palestinian farmers by the PA.
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