ABSTRACT
Economic factors rarely receive mention in a general discussion of the Israeli-Palestinian conflict. The most obvious reason for this omission is that the more directly political dimension of the conflict overshadows all others. This has not always been the case. During the British Mandate, when Jews and Arabs lived side by side in Palestine, the economic dimension did not enjoy secondary importance at all. In fact, the disparate economic performances of the Jewish and Arab populations in Palestine at the time transformed the balance of power between the two sides and had a major role in shaping the conflict. Economic factors, while frequently overlooked, continued to characterize the conflict in later periods too.
