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Institutional changes and breakpoints in Israeli trade

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  • Suleiman Abubader

Abstract

This paper examines the structural changes in Israeli trade trends since the 1970s. Structural change tests do not reject the null of no breaks in Israeli trade trends after Israel signed FTA agreements with the EEC and the USA, or after Israel's 1991 new trade policy. The tests, however, show significant evidence for breakpoints in 1993 in Israel's trade shares with three countries who had adhered strongly to the Arab boycott. This result suggests that the Middle East peace process, which began in 1991, considerably weakened the boycott and brought about positive changes in Israeli long-term trade patterns.

Suggested Citation

  • Suleiman Abubader, 2002. "Institutional changes and breakpoints in Israeli trade," Applied Economics, Taylor & Francis Journals, vol. 34(15), pages 1893-1901.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1893-1901
    DOI: 10.1080/00036840210127204
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    References listed on IDEAS

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    1. Razin, Assaf & Sadka, Efraim, 1993. "The Economy of Modern Israel," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226705897, April.
    2. Fishelson, G., 1993. "Political Events and Economic Trends : The Effects of the Intifada on the Israeli Economy," Papers 10-93, Tel Aviv.
    3. Fishelson, Gideon, 1993. "Political Events and Economic Trends: The Effects of the Intifada on the Israeli Economy," Foerder Institute for Economic Research Working Papers 275577, Tel-Aviv University > Foerder Institute for Economic Research.
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