The Effect of the Arab Boycott on Israel: The Automobile Market

Chaim Fershtman () and Neil Gandal

RAND Journal of Economics, 1998, vol. 29, issue 1, 193-214

Abstract: Recent progress toward a comprehensive peace in the Middle East has led to a relaxation of the enforcement of the Arab economic boycott of Israel. This in turn has led to the entry of all the major Japanese and Korean automobile manufacturers into the Israeli market. We examine the effect of the Arab economic boycott on this market. Using recent advances in estimating discrete-choice models of product differentiation, we estimate that the end of the boycott led to a per-purchase gain of approximately $2,343 in 1995. This benefit can be interpreted as a peace dividend.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819982 ... O%3B2-V&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: The Effect of the Arab Boycott on Israel: The Automobile Market (1995)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:randje:v:29:y:1998:i:spring:p:193-214

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().