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Since 1948, the 22 member states of the Arab League have maintained a boycott of Israeli companies and goods to show their opposition to the State’s creation. They have not ceased this, and other countries have joined them. Over the years, enthusiasm for the boycott has varied, depending on the political temperature.
Enforcing the boycott is not easy. The relationship is asymmetric, since Israel does not mind trading with boycott-enforcing countries. Moreover, most of the latter are Israel’s neighbours, making trade difficult to avoid. The boycott can be seen as a weapon, but is it actually killing trade?
Lorenzo Rotunno (Aix-Marseille University, AMSE) and Pierre-Louis Vézina (King's College London) studied this issue in the article entitled "Israel's open-secret trade", published in The Review of World Economics.
Read the article published in Economic Dialogues