The Potential Effect of Peace on Regional Economic Cooperation in the Middle East

Abstract

The peace process in the Middle East has heightened the prospects of potential benefits from regional economic cooperation. However, its actual implementation is subject to many constraints, stemming from the economic gaps between the countries, significant differences in social and economic structures and the prevalence of other non-economic priorities. Patterns of economic cooperation in specific fields (projects, trade, labor and capital) are identified and analyzed in terms of their sensitivity to constraints and of their potential contribution. AbstractThe peace process in the Middle East has heightened the prospects of potential benefits from regional economic cooperation. However, its actual implementation is subject to many constraints, stemming from the economic gaps between the countries, significant differences in social and economic structures and the prevalence of other non-economic priorities.Patterns of economic cooperation in specific fields (projects, trade, labor and capital) are identified and analyzed in terms of their sensitivity to constraints and of their potential contribution. 2

Patterns of Cooperation in High-Tech—Constraints, Feasibility, and Benefits: Results of a Study among Palestinians and Israelis

“…Hazboun and Bahiri (1994) found that joint ventures are the favored form of cooperation of 71 percent of Israeli firms and 56 percent of Palestinian firms. Bar-El and Schwartz (2003) analyzed the benefits of regional cooperation in the Middle East and categorized them into three categories: economies of scale, complementarities between production factors, and externalities. Bar-El and Malul (2008) considered two types of externalities-those defined as macroeconomic and those defined as sociopolitical.…”