The Political Economy of Smuggling: Trade in the West Bank Under the Israeli Border Regime

Abstract

This study examines the West Bank’s economic dependency on Israel under the Israeli border regime. This regime is manifested in the separation barrier, the division of Palestinian lands into separate administrative territories, and the Paris Economic Protocol. While most of the existing literature views this border system as an obstacle hindering Palestinian economic growth and burdening Palestinian traders, this study provides a broader perspective by exploring the daily interactions between the border structure and the agency of Palestinians. Drawing on border studies, this research reviews the colonial border regime as an interface where diverse actors interact, fostering smuggling, evasion practices, and unofficial collaboration between Palestinians and Israelis.