What would normalisation of economic relations between Mashrek countries, Turkey and Israel imply?

Abstract

This article examines the potential for economic cooperation among Mashrek countries, Turkey and Israel in the fields of trade in goods and services both separately and across-field. It first describes the macroeconomic features of the region and then estimates the overall potential for inter-industry trade in goods by estimating gravity equations for each country separately and the potential for intra-industry trade using Grubel-Lloyd indices. The article also examines the potential for trade in specific services, namely information and computer technology, transport, financial and health services.