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Journal of Economic Integration 2004 September;19(3) :447-469.
DOI: https://doi.org/10.11130/jei.2004.19.3.447
A Palestinian Growth History, 1968-2000
Sébastien Dessus 
The World Bank
Copyright ©2004 Journal of Economic Integration
ABSTRACT

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.

JEL Classification: E13, F15, N15, O40

Keywords: West Bank and Gaza | Israel | total factor productivity | convergence
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