Subject The article deals with the specifics of financial capital movement in Palestine and its impact on the country's economic growth. Objectives The aim is to show the impact of movements of financial capital on economic growth in Palestine, to explore and present the factors that increase the efficiency of financial capital in accelerating the economic growth of territories. Methods I conducted a content analysis of sources available in the scientific literature, and supplemented it by empirical study. I also used the standards of convergent and integrated analysis. The study applies general scientific and special methods of scientific knowledge, like the functional and structural analysis, the comparative and dynamic analysis, and classification. Results The study proves the efficiency of the circulation of financial capital and its stable relationship with economic growth in Palestine. The findings may help formulate the concept of Palestinian financial capital development and increase the activity of the financial market of the country. Conclusions The reduction in external borrowings is a main factor to increase the net inflow of financial capital and domestic production. These measures will improve the access to international export markets. It is important to periodically evaluate macroeconomic policies in the country. As the country's economy becomes more open and integrated with the rest of the world, capital inflows will greatly contribute to the transformation of the developing economy. Capital inflow is also necessary to ensure macroeconomic stability in Palestine, as it affects a wide range of macroeconomic and financial variables.
Keywords: financial capital, capital inflow, financial policy, economic growth
References:
Kondratov D.I. [Financial Integration: International Experience and Perspectives of Development of the CIS]. Ekonomicheskii zhurnal Vysshei shkoly ekonomiki = HSE Economic Journal, 2012, vol. 16, no. 1, pp. 105–142. URL: Link (In Russ.)
Awartani Basel, Al-Amad Adanan. International Aid and Economic Development: The case of Palestine. The Palestinian Economic Council for Development and Reconstruction (PECDAR), 2011.
Badwan N.L., Blazhenkova N.M., Klicheva E.V. et al. Increasing the Efficiency of the State Fiscal and Budgetary Policy in Modern Conditions. International Journal of Applied Business and Economic Research, 2017, vol. 15, iss. 22, pp. 125–138.
Bailliu N.J. Private Capital Flows, Financial Development, and Economic Growth in Developing Countries. Bank of Canada Working Paper, 2000, no. 2000-15, 31 p. URL: Link
Shtayyeh M. The Palestinian Economy in the Transitional Period. The Palestinian Economic Council for Development and Reconstruction (PECDAR), 3rd edition, 2010.
Murav'eva L.A. [Economy and Finance of the Classical Antiquity]. Uchet. Analiz. Audit = Accounting. Analysis. Audit, 2016, no. 4, pp. 99–111. URL: Link (In Russ.)
Fedorchenko A.V. [Economic integration in the middle East: Achievements or missed opportunities?]. Vestnik MGIMO Universiteta = MGIMO-University Bulletin, 2010, no. 5, pp. 266–275. URL: Link (In Russ.)
Cull R., Demirgüç-Kunt A., Lin J.Y. Financial Structure and Economic Development: A Reassessment. World Bank Economic Review, 2013, vol. 27, iss. 3, pp. 470–475.
Sadik A.T., Bolbol A.A. Capital Flows, FDI, and Technology Spillovers: Evidence from Arab Countries. World Development, 2001, vol. 29, iss. 12, pp. 2111–2125. URL: Link00083-3
Omran M., Bolbol A. Foreign Direct Investment, Financial Development, and Economic Growth: Evidence from the Arab Countries. Review of Middle East Economics and Finance, 2003, vol. 1, iss. 3, pp. 231–249.
Tkach O.P. [Capital Accumulation Processes in the Russian Economy]. Vestnik Saratovskogo gosudarstvennogo sotsial'no-ekonomicheskogo universiteta = Vestnik of Saratov State Socio-Economic University, 2012, no. 2, pp. 44–47. URL: Link (In Russ.)
Tyumchenkov A.V. [Theoretical aspects of ‘capital’ category and issues of capital flow]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2012, no. 3, pp. 164–168. URL: Link (In Russ.)
Seitumerov A.S. [Concept and content of the constitutional principle of free movement of finance and capitals]. Leningradskii yuridicheskii zhurnal, 2016, no. 1, pp. 101–110. URL: Link (In Russ.)
Tagarov B.Zh. [Information Asymmetry in the Capital Market and its Consequences]. Izvestiya Irkutskoi gosudarstvennoi ekonomicheskoi akademii = Izvestiya of Irkutsk State Economics Academy, 2014, no. 1, pp. 14–18. URL: Link (In Russ.)
Mel'nikov A.B., Romanenko R.G. [Investment climate and outflow in the major risk system of Russian economy stability]. Politematicheskii setevoi elektronnyi nauchnyi zhurnal Kubanskogo gosudarstvennogo agrarnogo universiteta, 2014, no. 100, pp. 1098–1117. (In Russ.) URL: Link
Shinkaryuk O.V., Ostrovetskii V.T., Stolyarov V.F. [Global and national estimates of innovation and human capital development]. Vestnik ekonomicheskoi nauki Ukrainy = Bulletin of Economic Science of Ukraine, 2016, no. 1, pp. 171–182. URL: Link (In Russ.)
Tobin J. Denezhnaya politika i ekonomicheskii rost [Money and Economic Growth]. Moscow, Librokom Publ., 2010, 267 p.
Ivanova A.A., Ivanov A.V. [Political and economic situation in Palestine during the British mandate and the prerequisites for the emergence of the Arab-Israeli conflict]. Vestnik Tomskogo gosudarstvennogo pedagogicheskogo universiteta = Tomsk State Pedagogical University Bulletin, 2017, no. 9, pp. 15–23. URL: Link (In Russ.)
