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====Economic consequences==== According to a 2013 World Bank report, Israeli restrictions hinder Palestinian economic development in Area C of the West Bank.<ref name=AUS2922p2b>{{harvnb|World Bank|2013|p=2}}. "While internal Palestinian political divisions have contributed to investor aversion to the Palestinian territories, Israeli restrictions on trade, movement and access are clearly the binding constraint to investment: these restrictions substantially increase the cost of trade and make it impossible to import many production inputs into the Palestinian territories, as illustrated, for instance, on the example of the telecommunications sector. For Gaza, the restrictions on import and export are in particular severe. In addition to the restrictions on labor movement between the Palestinian territories, the restrictions on movement of labor within the West Bank have been shown to have a strong impact on employability, wages, and economic growth. Israeli restrictions render much economic activity very difficult or impossible to conduct on about 61 percent of the West Bank territory, called Area C. Restrictions on movement and access, and the stunted potential of Area C."</ref> A 2013 [[World Bank]] report calculates that, if the [[Interim Agreement on the West Bank and the Gaza Strip|Interim Agreement]] was respected and restrictions lifted, a few key industries alone would produce US$2.2 billion per annum more (or 23% of 2011 Palestinian GDP) and reduce by some US$800 million (50%) the Palestinian Authority's deficit; the employment would increase by 35%.<ref name=AUS2922pviii>{{harvnb|World Bank|2013|p=viii}}. "[...] assumed that the various physical, legal, regulatory and bureaucratic constraints that currently prevent investors from obtaining construction permits, and accessing land and water resources are lifted, as envisaged under the Interim Agreement. [...] It is understood that realizing the full potential of such investments requires other changes as well β first, the rolling back of the movement and access restrictions in force outside Area C, which prevent the easy export of Palestinian products and inhibit tourists and investors from accessing Area C; and second, further reforms by the Palestinian Authority to better enable potential investors to register businesses, enforce contracts, and acquire finance. [...] Neglecting indirect positive effects, we estimate that the potential additional output from the sectors evaluated in this report alone would amount to at least USD 2.2 billion per annum in valued added terms β a sum equivalent to 23 percent of 2011 Palestinian GDP. The bulk of this would come from agriculture and Dead Sea minerals exploitation. [...] x. Tapping this potential output could dramatically improve the PA's fiscal position. Even without any improvements in the efficiency of tax collection, at the current rate of tax/GDP of 20 percent the additional tax revenues associated with such an increase in GDP would amount to some USD 800 million. Assuming that expenditures remain at the same level, this extra resource would notionally cut the fiscal deficit by half β significantly reducing the need for donor recurrent budget support. This major improvement in fiscal sustainability would in turn generate significant positive reputational benefits for the PA and would considerably enhance investor confidence. xi. The impact on Palestinian livelihoods would be impressive. An increase in GDP equivalent to 35 percent would be expected to create substantial employment, sufficient to put a significant dent in the currently high rate of unemployment. If an earlier estimated one-to-one relationship between growth and employment was to hold, this increase in GDP would lead to a 35 percent increase in employment. This level of growth in employment would also put a large dent in poverty, as recent estimates show that unemployed Palestinians are twice as likely to be poor as their employed counterparts."</ref>
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