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Foreign Direct Investment In North Korea And The Effect Of Special Economic Zones: Learning From Transition Economies

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  • HANHEE LEE

    (Sookmyung Women's University, Korea)

Abstract

This study analyzes critical factors that foreign investors would consider before investing in North Korea by empirically analyzing key FDI determinants in Central and Eastern Europe and the former Soviet Union (i.e., transition economies) and juxtaposing these results against North Korea¡¯s main investment hurdles and pull factors in order to suggest a way forward. For the empirical study, a fixed effect model is employed based on the panel data of all the transition economies through their entire transition periods. The analysis suggests that the special economic zones in the Visegrad countries could provide a relevant benchmark for North Korea.

Suggested Citation

  • Hanhee Lee, 2015. "Foreign Direct Investment In North Korea And The Effect Of Special Economic Zones: Learning From Transition Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(2), pages 35-56, June.
    • Handle: RePEc:jed:journl:v:40:y:2015:i:2:p:35-56
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    Cited by:

    1. Kopczewska Katarzyna, 2019. "Can public intervention improve local public sector economic performance? The analysis of Special Economic Zones in Poland," Central European Economic Journal, Sciendo, vol. 6(53), pages 221-245, January.
    2. Masahiro Tokunaga & Ichiro Iwasaki, 2017. "The Determinants of Foreign Direct Investment in Transition Economies: A Meta-analysis," The World Economy, Wiley Blackwell, vol. 40(12), pages 2771-2831, December.
    3. Iwasaki, Ichiro & 岩﨑, 一郎 & Tokunaga, Masahiro, 2019. "The Determinants and Macroeconomic Impacts of Foreign Direct Investment in Transition Economies," CEI Working Paper Series 2019-8, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    4. Kevin Williams, 2017. "Foreign Direct Investment, Economic Growth, and Political Instability," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(2), pages 17-37, June.

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    More about this item

    Keywords

    North Korea; Transition Economies; Central and Eastern Europe; Former Soviet Union; Foreign Direct Investment; Special Economic Zone;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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