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Sovereignty and Economic Development: The Case of Israel and Palestine

Author

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  • Arnon, A
  • Weinblatt, J

Abstract

The future permanent economic agreement between Israel and Palestine will have to determine, among other things, the trade regime and whether there should be economic borders. The decision will have to satisfy goals of economic development, including a reduction in economic and social gaps between the two countries, and questions of sovereignty. We describe and analyse the evolution of the Palestinian economy before and since the Oslo agreements. Concerning the future agreement, we discuss the tradeoffs between sovereignty and prosperity and argue for the establishment, at first, of economic borders and a regime of less than full integration.

Suggested Citation

  • Arnon, A & Weinblatt, J, 2001. "Sovereignty and Economic Development: The Case of Israel and Palestine," Economic Journal, Royal Economic Society, vol. 111(472), pages 291-308, June.
    • Handle: RePEc:ecj:econjl:v:111:y:2001:i:472:p:f291-308
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    Cited by:

    1. Nicolaj N. Mühlbach, 2020. "Tree-based Synthetic Control Methods: Consequences of moving the US Embassy," CREATES Research Papers 2020-04, Department of Economics and Business Economics, Aarhus University.
    2. 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.
    3. Botta, Alberto, 2010. "The Palestinian economy and its trade pattern: Stylised facts and alternative modelling strategies," MPRA Paper 29719, University Library of Munich, Germany.
    4. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2021. "Economy-wide effects of cross-border labor mobility: The case of Palestinian employment in Israel," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 964-981.
    5. Tucker, Jason, 2023. "The Israeli use of Economic Peace as a Peace Building Tool for the Occupied Palestinian Territories," OSF Preprints 3rqmu, Center for Open Science.
    6. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2018. "Labour leisure trade-off meets a mobility function to model cross-border movements of labour between Palestine and Israel," Conference papers 333017, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Agbahey Johanes & Siddig Khalid & Grethe Harald & McDonald Scott, 2020. "Labor exports from Palestine to Israel: a boon or bane for the West Bank economy?," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-25, March.
    8. Caruso Raul & Gavrilova Evelina, 2012. "Youth Unemployment, Terrorism and Political Violence, Evidence from the Israeli/Palestinian Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(2), pages 1-37, August.
    9. Ted Nabil ARANKI, 2001. "The Effect of Israeli Closure Policy on Wage Earnings in the West Bank and Gaza Strip," Middle East and North Africa 330400006, EcoMod.
    10. Missaglia, Marco & Valensisi, Giovanni, 2014. "Trade policy in Palestine: A reassessment," Journal of Policy Modeling, Elsevier, vol. 36(5), pages 899-923.
    11. Belal Fallah, 2017. "The Economic Response of Rural Areas to Local Supply Shock: Evidence From Palestine," Working Papers 1108, Economic Research Forum, revised 06 2017.
    12. World Bank, 2007. "West Bank and Gaza - Investment Climate Assessment : Unlocking the Potential of the Private Sector," World Bank Publications - Reports 7792, The World Bank Group.

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