Arab Boycott Against Israel and Its Unintended Impact on Arab Economic Welfare

Sharon, Joyce Shems

2003

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  • Submitted in partial fulfillment of the degree Master of Arts in Law and Diplomacy at the Fletcher School of Law and Diplomacy. Abstract: This paper analyzes the economic boycott imposed by the Arab world against the State of Israel to weaken the Jewish State's economy and ultimately destroy its chances of survival. While a great deal of literature exists on the topic, little research has been done...read moreregarding the costs incurred by the Arab states imposing the economic weapon against its enemy. This thesis aims to understand the self-defeating policy of intentionally distorting trade and investment patterns through the use of a boycott. The paper proposes two hypotheses: 1) The Arab policy of boycotting Israel and blacklisting non-conforming companies created an unfavorable environment for foreign direct investment in the Arab world and 2) the boycott led to worsening terms of trade and a reduction in the volume of trade of Arab countries, leading to an overall decrease in national income and economic welfare. This thesis substantiates the hypotheses proposed by drawing upon concepts of international trade and investment while also opening up questions for future research.read less
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