Six Decades of the Israeli-Arab Conflict: An Assessment of the Economic Aspects Academic Article uri icon


  • Abstract The article critically evaluates the literature that deals with the economic aspects of the Israeli-Arab conflict. The survey covers:(1) Data issues and lack of trustworthy time series;(2) the existence and causal direction of an arms race between Israel and its Arab neighbors;(3) the defense-growth nexus and possible spillovers from the defense industry to civilian sectors;(4) the effects of foreign aid; and (5) the dividends of a possible peace agreement. The survey concludes with recommendations for future research.

publication date

  • January 1, 2008