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Openness and Growth in North Korea: Evidence from Time--Series Data

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  • Jang C. Jin

    (Chinese University of Hong Kong, Shatin, NT, Hong Kong)

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    Abstract

    New growth theories suggest that an economy"s increased openness raises domestic productivity, and hence must have a positive effect on the living standards of a nation. The North Korean economy, isolated from world trade for several decades and its economy devastated, provides a test for this implied causality. The possibility that the ultimate source of declining real gross national product since 1974 is a decrease in trade liberalization of the North Korean economy cannot be rejected. The results are more definitive when the sample is split into two subperiods, pre--1974 and post--1974. These findings are generally consistent with the conventional model in which free trade stimulates economic growth. Copyright Blackwell Publishing Ltd. 2003

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Review of International Economics.

    Volume (Year): 11 (2003)
    Issue (Month): 1 (February)
    Pages: 18-27

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    Handle: RePEc:bla:reviec:v:11:y:2003:i:1:p:18-27

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    Cited by:
    1. Muhammad, Shahbaz, 2012. "Does Trade Openness Affect Long Run Growth? Cointegration, Causality and Forecast Error Variance Decomposition Tests for Pakistan," MPRA Paper 37391, University Library of Munich, Germany, revised 10 Mar 2012.
    2. Ruiz Estrada, Mario Arturo & Park, Donghyun, 2008. "Korean unification: How painful and how costly," Journal of Policy Modeling, Elsevier, vol. 30(1), pages 87-100.
    3. Sumie Sato & Mototsugu Fukushige, 2007. "The End of Import-Led Growth? North Korean Evidence," Discussion Papers in Economics and Business 07-38, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    4. Talberth, John & Bohara, Alok K., 2006. "Economic openness and green GDP," Ecological Economics, Elsevier, vol. 58(4), pages 743-758, July.

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