The Effect of the Arab Boycott on Israel: The Automobile Market
AbstractRecent progress toward a comprehensive peace in the Middle East has led to a relaxation of the enforcement of the Arab economic boycott of Israel. This in turn has led to the entry of all the major Japanese and Korean automobile manufacturers into the Israeli market. We examine the effect of the Arab economic boycott on this market. Using recent advances in estimating discrete-choice models of product differentiation, we estimate that the end of the boycott led to a per-purchase gain of approximately $2,343 in 1995. This benefit can be interpreted as a peace dividend.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 29 (1998)
Issue (Month): 1 (Spring)
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Web page: http://www.rje.org
Other versions of this item:
- Fershtman, C. & Gandal, N., 1996. "The Effect of the Arab Boycott on Israel: The Automobile Market," Discussion Paper 1996-08, Tilburg University, Center for Economic Research.
- Chaim Fershtman & Neil Gandal, 1995. "The Effect of the Arab Boycott on Israel: The Automobile Market," International Trade 9511001, EconWPA.
- Fershtman, C. & Gandal, N., 1995. "The Effect of the Arab Boycott on Israel: The Automobile Market," Papers 39-95, Tel Aviv.
- Chaim Fershtman & Neil Gandal, 1996. "The Effect of the Arab Boycott on Israel: The Automobile Market," CARE Working Papers 9607, The University of Texas at Austin, Center for Applied Research in Economics.
- F1 - International Economics - - Trade
- F2 - International Economics - - International Factor Movements and International Business
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