Competitive Advantage of Palestinian Economy in Light of Porter Model

Abstract

This paper examines work as guidance in formulating the relationship between Israeli and Palestinian Economy, in the context of fulfilling the requirements of Palestinian state as there are two scenarios related to trade relations between Palestinians & Israeli Economy, if it’s custom union or free trade area, the shape of this relation Consist a framework for Economic Policies for Palestinian state. By reason of the findings of Michael Porter in 1998, this research focused on the determinants of competitive advantage as written by Michael Porter is done. In determining if the Palestinian economy has improved through the years, the parameters used in 1998 were adopted. The researcher adopted the determinants used by Porter in his study of the Palestinian Economy in 1998. Using these as parameters, the programs under the different areas in the PIF was assessed to come up with a paradigm to establish a competitive advantage for the State of Palestine based on the different areas of investment.