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Institutional Changes and Breakpoints in Israeli Trade

Suleiman Abubader
Authors registered in the RePEc Author Service: Suleiman Abu-Bader ()

Applied Economics, 2002, vol. 34, issue 15, pages 1893-1901

Abstract: This paper examines the structural changes in Israeli trade trends since the 1970s. Structural change tests do not reject the null of no breaks in Israeli trade trends after Israel signed FTA agreements with the EEC and the U.S.A., or after Israel's 1991 new trade policy. The tests, however, show significant evidence for breakpoints in 1993 in Israel's trade shares with three countries who had adhered strongly to the Arab boycott. This result suggests that the Middle East peace process, which began in 1991, considerably weakened the boycott and brought about positive changes in Israeli long-term trade patterns. Copyright 2002 by Taylor and Francis Group

Date: 2002

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