Jointly but Severally: Arab-Jewish Dualism and Economic Growth in Mandatory Palestine

Newly estimated national accounting data for the Arab community are utilized to provide a comparative economic profile of the Arab and Jewish sectors in mandatory Palestine's dual economy. It is shown that the Arab economy grew substantially, but at a much slower rate than the Jewish economy. Productivity advance, however, seems to have made a significantly larger relative contribution to Arab growth. General and specific dualistic features of Arab-Jewish trade and their growth promoting effects are also explored, suggesting that the political conflict between the two communities played only a minor role in shaping their economic interrelationship and performance.