ABSTRACT
The major forms that partial economic integration and dependence took were direct trade - particularly exports of Israeli goods to the territories and the "export" of labor from the territories to Israel. The high growth rate of the West Bank (WB)/Gaza Strip(GS) was unevenly distributed. Agriculture, construction and services grew at a faster rate than industry. With the change of government from Labor to Likud after the 1977 elections, new policies aimed at accelerating the integration of the territories into Israel - both politically and economically - began rapidly to take effect. Although economic enterprises have been established in the WB/GS by Jewish investors benefiting from government subsidies, the rate has not been matched by the increase in Jewish population. In some ways Israel may be viewed as the core economy, its industry as the core industry, and the occupied territories as the colonial or peripheral economy.
