ABSTRACT
The spatial structure of the Palestinian economy is at the very core of the Palestinian problem. Territorial expansion, territorial control, transport links, closures, the control of water and the right to return are illustrations of the fundamentally spatial nature of the problem. The aim of this chapter is to examine the interrelationships in the Palestinian economy between economic growth and development, concentration of economic activity, spatial economic structure and the future conditions for some of the least privileged Palestinians, those living in the refugee camps. Specific features of Palestinian society and the economy are examined, using the economic theory of agglomeration and increasing returns, and somewhat untraditional conclusions concerning a potential Palestinian development trajectory are drawn.
