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Israel and Palestine

Study: An Israel-Palestine peace deal could bring an economic gain of $173 billion

A new analysis from the RAND Corporation found that a two-state solution to the Israeli-Palestinian conflict could create a $173 billion economic reward.

The peace deal would create a $123 billion gain for the Israeli economy, while Palestinians would benefit from an additional $50 billion, over a 10-year period. That figure would translate to an average per capita income of $2,200 (five percent) for every Israeli and an average per capita income increase of $1,000 (36 percent) for each Palestinian, The New York Times explains.

On the other hand, the RAND report notes that a "return to violence" would cause a 46 percent decrease in per capita gross domestic product in the West Bank and Gaza, as well as a 10 percent decrease in Israel's GDP, by 2024.

While a two-state solution is hardly imminent, RAND says the study is meant to show that there are also economic incentives for peace.

"The point is to demonstrate that there is money on the table," Charles P. Ries, a RAND vice president, told the Times. "There are big gains, and people don't realize how big they are."