This study aimed to analyze the impact of the size of domestic working labour force, real gross
domestic capital formation, real domestic exports and imports of goods and services, and political
instability on real gross domestic product( RGDP) in Palestine during the period of 1994 -2013. To
examine the empirical relationship between these explanatory variables and real (GDP) growth the study
adopted a standardized Cobb- Douglas production function by using the annual official data of the
Palestinian Central Bureau of Statistics (PCBS), and applying the Ordinary least Square method (OLS)
and Second Order Auto Correlation Techniques.
The empirical results of the model applied indicated that there is a positive relationship between
the size of domestic working labour force, real gross domestic capital formation, real domestic exports and
real gross domestic product( RGDP), and a negative relationship between real domestic imports of goods
and services, and political instability and the real growth of (GDP). The study suggested several
recommendations that can boost the level of growth, among them the most important one, is the urgent
need for more investment in the economy as it leads to more formation of domestic capital which can
count more in terms of economic growth in many ways