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
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