Potential Trade between Egypt and Israel

Abstract

Trade is the most common mode of international economic transactions. Establishment of trade relations between recent belligerents raises numerous political and economic questions, as was shown in the previous chapters. The present chapter seeks to tackle a seemingly technical problem — developing a methodology for predicting the volume and, more important, the composition of trade between recent belligerents, that is, neighbouring countries which have not traded with each other in the recent past. The methodology, which uses some of the concepts developed in Chapter 3, is demonstrated on Egyptian-Israeli trade.