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An Economic Development Road Map for Promoting Israeli-Palestinian Cooperation

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Author Info

  • Malul Miki

    ()
    (Department of Public Policy and Administration, Ben Gurion University)

  • Mansury Yuri

    ()
    (KDI School of Public Policy and Management)

  • Hara Tad

    ()
    (Rosen College of Hospitality Management & Dick Pope Sr. Institute of Tourism Studies, University of Central Florida)

  • Saltzman Sidney

    ()
    (Cornell University)

Abstract

In this paper we propose an interregional framework as a policy tool for identifying sectors that can stimulate Palestinian economic development while recognizing the reality of the Israeli-Palestinian economic interdependencies. Specifically, this paper emphasizes the potential role of bi-national trade channels to promote Israeli-Palestinian cooperation. To that end, we apply an interregional input-output model to 14 sectors of the Palestinian and Israeli economies and their trading relationships. We then investigate the impact of an exogenous foreign injection under alternative trade scenarios. The results suggest that foreign aid injections to the Banking and Construction sectors in Palestine make the highest impact on Palestinian output. On the other hand, if the primary objective is to promote employment, then injections should be concentrated on the Community, Social, Personal and Household Services sectors.

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Bibliographic Info

Article provided by De Gruyter in its journal Peace Economics, Peace Science, and Public Policy.

Volume (Year): 14 (2008)
Issue (Month): 1 (April)
Pages: 1-24

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Handle: RePEc:bpj:pepspp:v:14:y:2008:i:1:n:1

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  1. Markusen, James R., 1981. "Trade and the gains from trade with imperfect competition," Journal of International Economics, Elsevier, vol. 11(4), pages 531-551, November.
  2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  3. Deardorff, Alan V., 1979. "Weak links in the chain of comparative advantage," Journal of International Economics, Elsevier, vol. 9(2), pages 197-209, May.
  4. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
  5. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  6. Ajit K. Ghose, 2004. "Global inequality and international trade," Cambridge Journal of Economics, Oxford University Press, vol. 28(2), pages 229-252, March.
  7. Isard Walter, 2004. "A Jordan/West Bank Development Proposal," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 10(2), pages 1-21, April.
  8. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-93, September.
  9. Peter H. Lindert & Jeffrey G. Williamson, 2001. "Does Globalization Make the World More Unequal?," NBER Working Papers 8228, National Bureau of Economic Research, Inc.
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Cited by:
  1. Shoham Amir & Rosenboim Mosi & Malul Miki & Saadon Yossi, 2011. "Core and Periphery -- The Dual Effect of Terror," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-15, September.

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