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 InfoPaper provided by The University of Texas at Austin, Center for Applied Research in Economics in its series CARE Working Papers with number 9607.
Length: 11 pages
Date of creation: Feb 1996
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Other versions of this item:
- Chaim Fershtman & Neil Gandal, 1998. "The Effect of the Arab Boycott on Israel: The Automobile Market," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 193-214, Spring.
- Chaim Fershtman & Neil Gandal, 1995. "The Effect of the Arab Boycott on Israel: The Automobile Market," International Trade 9511001, EconWPA.
- 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.
- Fershtman, C. & Gandal, N., 1995. "The Effect of the Arab Boycott on Israel: The Automobile Market," Papers 39-95, Tel Aviv.
- F1 - International Economics - - Trade
- F2 - International Economics - - International Factor Movements and International Business
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