Economists for Peace and Security

The Economics of Peace and Security Journal

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eps journal
A publication by Economists for Peace and Security

Six decades of the Israeli-Arab conflict: an assessment of the economic aspects
ABU-QARN Aamer S.

Vol 3, No 2 - Symposium: Palestine - an economy in conflict, July 2008

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.

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