ABSTRACT
The economic impact of occupation depends on the objectives, duration, form and degree of interaction, and levels of technology of the occupied and the occupier. The common impression is that military occupation has been detrimental to the economy of the occupied territories. In assessing the impact of occupation, we shall compare the economic effects of occupation by Jordan and Egypt between 1948 and 1967 with those of occupation by Israel since 1967, and the economies of Jordan, Egypt, and Israel in the respective periods. Occupation for the purpose of settlement and resource exploitation tends to become long-term and to aim at integration of the economy of the occupied territory with that of the home country. These various types of occupation often overlap in initial objectives so that the occupation may be both economic and defensive at the same time. The occupation forces, by failing to implement feasible rational economic policies, have forfeited the potential output that could have been realized.
