Israel's focus on these types of economic exports has been dictated largely by limitations in the available natural resources and geographic layout of the country. While there are some significant deposits of natural resources, as with Israel's agriculture, these resources are highly specialized and lend themselves to the creation of a specialized industrial economy. The focus on military equipment exports has been dictated in large part by Israel's history of conflict since the nation's creation in 1948 ("Country Profile") and the subsequent wars with neighbors and the native Palestinians. In Israel, industrial centers are concentrated along the western edge of the nation where access to shipping and transportation resources is highest. This is especially convenient since most of the country's natural resources are located in the southern Negev Desert region. Resources that can be found in any significant amounts include copper, phosphates, potash, ceramic clay, and gypsum (Safran and Pollock 521; Linge 79). Because of the general lack of significant mineral deposits in the country, industrial production is relatively limited. In fact, along with grain, Israel depends on imports of energy and raw materials for the industries that do exist. Consequently, industry only makes up 30.8% of the Israeli GDP while the service economy accounts for 66.6% of the official $140.3 billion GDP. Despite these severe resource limitations, Israel's economy...

Despite these limitations, however, Israel's economy has continued to thrive. This has been the historical reality in large part because the Israeli people have focused their economy on specialized exports such as citrus fruits, military equipment, and high-technology offerings. Because of the high demand for these kinds of products the Israeli economy has maintained a strong level of growth despite the lack of natural resources that many of the country's neighbors take for granted.
Works Cited

Country Profile: Israel and Palestianian Territories." BBC News. 17 July 2007. 13 Sept. 2007 http://news.bbc.co.uk/2/hi/world/middle_east/country_profiles/803257.stm.

Israel." CIA -- the World Factbook. 6 Sept. 2007. 13 Sept. 2007 https://www.cia.gov/library/publications/the-world-factbook/geos/is.html.

Linge, Mary Kay. The Essential Desk Reference. Oxford: Oxford University Press, 2003.

Safran, Nadav and Pollock, David. "Israel." The Encyclopedia Americana. Vol. 15. Danbury, CT: Grolier, Inc., 2003. 519-538.