Abstract

Objectives: The study analyzes the factors that affect public expenditure in Palestine. It covers the period from 2005 to 2024. Methods: Appropriate statistical methods were employed in accordance with the nature of the data, which consisted of time-series data. The Augmented Dickey-Fuller (ADF) test and Autoregressive Distributed Lag (ARDL) regression analysis were used. The ARDL approach is a dynamic estimation technique well suited to the nature of the data and the sample size, as it captures both short-run and long-run effects. Results: The results show that, in the short run, the independent variables generally do not significantly affect public expenditure, except for foreign aid and GDP, which have positive and statistically significant effects. In the long-run, most independent variables have positive and statistically significant effects on public expenditure, except population growth, which remains positive but not statistically significant. Foreign aid and grants also have a significant negative effect in the long run. Conclusions: The study recommends further research that compares different periods and conducts comparative studies with developing countries.