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The Economic Reconciliation Process develops hybrid cross-border models based on the free economic zone, the industrial district, and the cluster to generate a common economic interest between countries and populations in declared or potential conflict in the Middle East.

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Introduction 1. The Economic Peace Theory 2. Conflict Environment 3. Models of Economic Development 4. Hybrid Economic Models in the Middle East Conclusions

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Ilan Bijaoui is Lecturer of Business Management at Bar Ilan University, Israel.

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