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A Palestinian Growth History, 1968-2000

Sebastien Dessus ()

Journal of Economic Integration, 2004, vol. 19, 447-469


The West Bank and Gaza have been occupied by Israel since 1967. As a result, it experienced a deep integration of its factor and goods markets with the richer economy of Israel. However, such an integration did not bring significant “dynamic” gains. Time series analysis indeed suggest that productivity growth hardly contributed to Palestinian GDP. Besides, the decomposition of income convergence patterns with Israel implies a rather unusual phenomenon of divergence in productivity. Economies of adaptation and scale that could have been encouraged by greater integration with Israel remained scarce, or were offset by opposite forces.

Keywords: West Bank and Gaza; Israel; total factor productivity; convergence (search for similar items in EconPapers)
JEL-codes: E13 F15 N15 O40 (search for similar items in EconPapers)
Date: 2004
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