Country Profile: Israel's Economic Performance and Political Landscape

This economics project presents a comprehensive country profile of Israel, examining its macroeconomic performance and political landscape. The project analyzes key economic indicators such as GDP, inflation, and unemployment rates over a 10-year period, including trend analysis. It also delves into the political climate, describing Israel's parliamentary democracy and multiparty system, along with problems related to an election year such as rising prices, housing costs, and differing policy prescriptions from incumbent and opposition parties. The project includes a critical personal opinion on the Israeli economy, its strengths, and challenges. References to academic sources are provided to support the analysis. The assignment covers topics such as the strengths and weaknesses of the Israeli economy, the impact of political factors on economic performance, and the role of government policies in addressing economic challenges.

ECONOMICS
ASSIGNMENT
Economics of Israel

GDP of Israel
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0
50000000000
100000000000
150000000000
200000000000
250000000000
300000000000
350000000000
400000000000
GDP
GDP
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0
50000000000
100000000000
150000000000
200000000000
250000000000
300000000000
350000000000
400000000000
GDP PPP
GDP PPP

Per capita GDP of Israel
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
GDP per capita
GDP per capita

GDP growth of Israel
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
1
2
3
4
5
6
7
GDP growth
GDP growth

Inflation and CPI of Israel
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
80
85
90
95
100
105
110
CPI
CPI
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Inflation
Inflation

Unemployment rate of
Israel
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
2
4
6
8
10
12
Unemployment rate
Unemployment rate

Political climate and structure in Israel
 Parliamentary
Democracy
 Multiparty
system
 Each of the
government
gets 5 years of
tenure.

Problems- Increasing price
level
 Increase in the price of
housing.
 Increase in the price of
basic goods and services.
 Youth workers with low
income are facing the
problem.
 Incumbent and
oppositions have different
policy prescriptions.
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
0
20
40
60
80
100
120
Consumer price index

Reducing strength of the export sector
 A part of the industry is
facing lack of capitals.
 This is reducing the
competitiveness of the
companies.
 Incumbent government
tackled this with a
reduction in corporate tax.
 Opponents’ proposal
includes infusion of more
capital for the assistance.

Rising number of local monopolies in the economy
 Monopolies and cartel
can be seen anywhere.
 Increasing price due to
cartel.
 Lack of choice to the
customers of the
market.
 Allegations against the
incumbent government
to support monopolies.
 Opposition proposed a
reformation of the
antitrust laws.

Personal opinion
 Israel is one of the strongest economies
of the world.
 Economic problems and government
actions are reducing the potential.
 Price ceiling can amplify the problem.
 Reduction in corporate tax would reduce
the tax revenue and hence capital
infusion is better option.

References
 Daoud, N., Soskolne, V., Mindell, J. S., Roth, M. A., &
Manor, O. (2018). Ethnic inequalities in health between
Arabs and Jews in Israel: the relative contribution of
individual-level factors and the living
environment. International journal of public
health, 63(3), 313-323.
 Hamed, T. A., & Bressler, L. (2019). Energy security in
Israel and Jordan: The role of renewable energy
sources. Renewable Energy, 135, 378-389.
 Harpaz, I. (2017). Trends and Developments in Work and
Organizations in Israel. In Work and Organizations in
Israel, 6(1), pp. 13-73.
 Koreh, M. (2017). The fiscal politics of welfare state
expansion: The case of social insurance in Israel. Journal
of European Social Policy, 27(2), 158-172.
 Lavee, D., Kahn, Y., & Fisher, Y. (2018). Benefits of social
impact bonds in reducing unemployment levels among
ultra-Orthodox Jews in Israel. International Journal of
Public Policy, 14(3-4), 235-257.
 Mandelkern, R. (2015). What made economists so
politically influential? Governance-related ideas and
institutional entrepreneurship in the economic
liberalisation of Israel and beyond. New Political
Economy, 20(6), 924-941.
 Marey-Sarwan, I., & Roer-Strier, D. (2017). Parents’
perceptions of risk for children: A case study of Bedouin
parents from unrecognized villages in Israel. Social
Service Review, 91(2), 171-202.
 Sharkansky, I. (2017). The political economy of Israel.
Routledge.
 Soffer, A. (2015). The changing situation of majority and
minority, and its spatial expression. The case of the
Arab minority in Israel. Pluralism and political
geography. People, territory and state, 80-99.
 Whitelam, K. W. (2018). The emergence of Israel: Social
transformation and state formation following the decline
in Late Bronze Age trade. In Revealing the History of
Ancient Palestine, 11(2), pp. 39-72.
 Willen, S. S. (2015). Lightning rods in the local moral
economy: debating unauthorized migrants'
deservingness in Israel. International Migration, 53(3),
70-86.
 Yu, H., Pearlmutter, D., & Schwartz, M. (2018). Life cycle
assessment of an energy-economy nexus: The case of
Israel and South Korea. Environmental Impact
Assessment Review, 69, 61-69.