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German Unification: Lessons for Korea?

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  • Blum Ulrich

    (Lehrstuhl für Wirtschaftspolitik und Wirtschaftsforschung, Martin-Luther-Universität Halle-Wittenberg, Große Steinstraße 73, D-06108 Halle)

Abstract

We analyze the similarities and differences in terms of the demographic, social, political and economic situation of the two Germanies and the two Koreas before unification. Based on the German experience, we inquire whether there is room for economic policy unification strategies. An important issue is the degree of international openness which, under “stone-age” type conditions, is much lower in North Korea than it ever was in East Germany. This may create additional adjustment costs, especially if institutions change.

Suggested Citation

  • Blum Ulrich, 2012. "German Unification: Lessons for Korea?," Review of Economics, De Gruyter, vol. 63(3), pages 314-338, December.
    • Handle: RePEc:lus:reveco:v:63:y:2012:i:3:p:314-338
    DOI: 10.1515/roe-2012-0303
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