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Economic aspects of the Palestinian-Israeli conflict: the collapse of the Oslo Accord

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  • Fadle M. Naqib

    (University of Waterloo, Department of Economics, Waterloo, Ontario, Canada)

Abstract

Since October 2000 Israel and the Palestinians of the West Bank and Gaza Strip have become entangled in a bloody confrontation. This paper focuses on the economic relationship between the Israeli economy and the Palestinian economy of the West Bank and Gaza Strip, and the ways in which this has contributed to the collapse of the Oslo Accord. The paper finds that Israeli policies have distorted and weakened the Palestinian economy, particularly in the areas of trade (dependence upon one major trade partner), taxation (loss of revenues to finance development spending) as well as in the labour market (controls on labour flows) and in Palestinian access to land (including land confiscation). As a result, besides income compression, poverty and unemployment have risen in the Palestinian territories. Two central issues of the conflict need to be addressed: the Palestinian right to sovereignty over their land and their right to free their economy from colonial dependency on Israel. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • Fadle M. Naqib, 2003. "Economic aspects of the Palestinian-Israeli conflict: the collapse of the Oslo Accord," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 499-512.
    • Handle: RePEc:wly:jintdv:v:15:y:2003:i:4:p:499-512
    DOI: 10.1002/jid.999
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    References listed on IDEAS

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    1. N/A, 2002. "Documents," South Asian Survey, , vol. 9(2), pages 287-304, September.
    2. N/A, 2002. "Documents," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 3(2), pages 336-337, September.
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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. 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.
    3. 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.

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