Developing and Enhancing the Competitiveness of the Palestinian National Product: The Leather and Footwear Sector—Analysis and Evaluation of Government Interventions

Abstract

In view of the leather and footwear industry’s declining market share and production activity, our study aims to identify the most important challenges facing the leather and footwear sector related to the decline in its market share and production activity. It also aims to assess government interventions that have sought to enhance the competitiveness of the sector. In this framework, data on the values and quantities of imported shoes for the West Bank during the period 2010–2021 were used to compare the change in their direction relative to another selected commodity under the appropriate conditions for the use of this model, where the study sample included a selected sample of shoe factories and tanneries owners in the city of Hebron, which numbered 232 factories. This study focused on the “Difference in Difference” methodology. The results showed that there are no indications that the import of shoes from China is affected by these politics, and the success of this policy lies in subjecting the flow of imported goods to the scrutiny of the Palestinian customs department. Furthermore, the study also provides a vision for the Palestinian government to create a legislative structure to protect and support the national product.