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Trade Policy and Labor Services: Final Status Options for the West Bank and Gaza

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  • Schiff, Maurice

    (World Bank)

Abstract

This paper considers the policy options of the West Bank and Gaza (WBG) with respect to trade and the exports of labor services. It concludes that i) a non-discriminatory trade policy (NDTP) is unambiguously superior to an FTA with Israel; ii) the WBG should pursue a NDTP with all its neighbors, but only under the condition that the trade policy be open, transparent, and enforced by a credible lock-in mechanism; otherwise, a CU with Israel may be preferable; iii) the PA should establish a system of fee-based permits for Palestinian labor working in Israel, and iv) the PA should consider allowing access by Jordanian workers to the WBG labor market.

Suggested Citation

  • Schiff, Maurice, 2004. "Trade Policy and Labor Services: Final Status Options for the West Bank and Gaza," IZA Discussion Papers 1029, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1029
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    References listed on IDEAS

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    1. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, vol. 54(1), pages 169-187, October.
    2. Vamvakidis, Athanasios, 1998. "Regional Integration and Economic Growth," The World Bank Economic Review, World Bank, vol. 12(2), pages 251-270, May.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:

    1. Johanes Agbahey & Khalid Siddig & Harald Grethe & Jonas Luckmann, 2022. "Trade policy in a sovereign Palestinian State: What are the options in a final settlement?," The World Economy, Wiley Blackwell, vol. 45(10), pages 3269-3293, October.
    2. Etkes Haggay, 2012. "The Impact of Employment in Israel on the Palestinian Labor Force," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(2), pages 1-36, August.
    3. Johanes Agbahey & Khalid Siddig & Harald Grethe, 2017. "Labor exports from the West Bank to Israel: between regretting the past and hoping for a better future," EcoMod2017 10133, EcoMod.
    4. Etkes, Haggay, 2011. "The impact of employment in Israel on the Palestinian labor force (2005–08)," MPRA Paper 34681, University Library of Munich, Germany.

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    More about this item

    Keywords

    labor services; free trade agreement; customs union; unilateral liberalization; West Bank and Gaza;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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