It is not possible to understand and analyze economic performance of Palestinian firms independently of it s geopolitical context. Israel control over the West Bank still exists nowadays as it does not recognize the State of Palestine and the sovereignty of the Palestinian Authority to fully administrate its territory. Consequently, some obstacles to the industrial development are related with this external influence of Israel, and the Palestinian Autho

rity lack of control over its external and internal borders. The main objective of this study, that crosses qualitative and quantitative methodological approaches (in

-depth interviews and a questionnaire to a statistically representative sample of the West Bank manufacturing

activities), is to disclose and discuss the major obstacles that came from this external influence. Namely, obstacles in the rawmaterials importation, as well as obstacles to sell West Bank goods in local and foreign markets