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| | EH.Net Encyclopedia: A Brief Economic History of Modern Israel |
 | | Israel was fortunate in receiving large sums of capital inflows: U.S. aid in the forms of unilateral transfers and loans, German reparations and restitutions to individuals, sale of State of Israel Bonds abroad, and unilateral transfers to public institutions, mainly the Jewish Agency, which retained responsibility for immigration absorption and agricultural settlement. |
 | | Thus, while employment in Israel was a major contributor to the economy of the Palestinians, its effects on the Israeli economy, except for the sectors of construction and agriculture, were not large. |
 | | Economic fluctuations in Israel have usually been associated with waves of immigration: a large flow of immigrants which abruptly increases the population requires an adjustment period until it is absorbed productively, with the investments for its absorption in employment and housing stimulating economic activity. |
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