ABSTRACT

Israel's use of the three factors of production—land, labor and capital—in the West Bank have benefited it far more than any advantage received by Arab inhabitants of the West Bank from the occupation. The Israeli government maintains that: "Since 1967 economic life in the area has been characterized by rapid growth and a very substantial increase in living standards, made possible by the interaction of the economies of the areas with that of Israel. There has been an increase in Agriculture's share of the GNP since 1967, but a decline in the percentage of the work force employed in farming. Until June 1967 agriculture provided about 24 percent of the GNP, but increased by the 1980s to about a third. Industrial production is largely confined to supply of essential goods such as food processing, beverages, tobacco processing, textiles, clothing and furniture.