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North Korea’s External Economic Relations

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Author Info
Stephan Haggard () (University of California, San Diego Graduate School of International Relations and Pacific Studies)
Marcus Noland () (Peterson Institute for International Economics)

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Abstract

North Korea’s international transactions have grown since the 1990s famine period. Illicit transactions appear to account for a declining share of trade. Direct investment is rising, but the county remains significantly dependent on aid to finance imports. Interdependence with South Korea and China is rising, but the nature of integration with these two partners is very different: China’s interaction with North Korea appears to be increasingly on market-oriented terms, while South Korea’s involvement has a growing noncommercial or aid component. These patterns have implications for North Korea’s development, the effectiveness of UN sanctions, and its bargaining behavior in nuclear negotiations.

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Publisher Info
Paper provided by Peterson Institute for International Economics in its series Peterson Institute Working Paper Series with number WP07-7.

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Date of creation: Aug 2007
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Handle: RePEc:iie:wpaper:wp07-7

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Related research
Keywords: North Korea; sanctions; political economy; aid; transitional economies;

Find related papers by JEL classification:
F5 - International Economics - - International Relations and International Political Economy
P3 - Economic Systems - - Socialist Institutions and Their Transitions
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. Stephan Haggard & Marcus Noland, 2008. "Famine in North Korea Redux?," Peterson Institute Working Paper Series WP08-9, Peterson Institute for International Economics. [Downloadable!]
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This page was last updated on 2009-11-23.

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