News
ISID releases a new policy brief: Trade restrictions lead to lower wages and more violence
Published: 3 October 2017
To address security concerns, governments often implement trade
barriers and restrictions on the movement of goods and people. A new
study from the Occupied Palestinian Territories documents the negative
effects of these trade restrictions on the target economy, and their
implications for political violence. Amodio, Baccini and Di Maio (2017)
show that the import restrictions imposed by Israel on the West Bank
have a negative effect on industrial output and wages in those sectors
and localities where production is more dependent upon restricted
inputs. They also find that episodes of political violence increased in
these localities relative to others.
