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Sixty years after the partition resolution: what future for the Arab economy in Israel?


  • Khalidi, Raja J.


Despite the expectations of economic theory, a century of Arab-Jewish economic interaction in Palestine has not led to the convergence that is supposed to result from exchange between a capital-rich economy and a labor-intensive one. After 60 years of failed integration, the Arab population in Israel has fallen to the bottom of the socio-economic ladder. With the Palestinian “regional economies” in Israel and the occupied territories operating as part of the same Israeli economic regime, the challenge for Palestinian economic policy makers is to build on the new paradigm in shaping a national development strategy aimed at reconstructing Arab-Jewish economic relations on the principles of balanced cooperation embodied in the Economic Annex of the 1947 UN partition resolution.

Suggested Citation

  • Khalidi, Raja J., 2008. "Sixty years after the partition resolution: what future for the Arab economy in Israel?," MPRA Paper 21805, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21805

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    More about this item


    Palestine; Israel; economy; regional economy; Palestine Partition;

    JEL classification:

    • N85 - Economic History - - Micro-Business History - - - Asia including Middle East
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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