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Modeling Korean Unification

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  • Marcus Noland

    ()
    (Peterson Institute for International Economics)

  • Sherman Robinson

    (Peterson Institute for International Economics)

  • Tao Wang

    (Peterson Institute for International Economics)

Abstract

For North Korea, product market integration would generate large welfare gains, sufficient to end the famine. Additional gains could be had through military demobilization. For the South, the impact of product market integration would be trivial, but the impact of factor market integration would be considerable, affecting the composition of output, distribution of income, and rate of growth. Given moderately rapid technological convergence, expected levels of cross-border migration, and equalization of rates on return on capital, per capita incomes in the North would remain well below those in the South for an extended period.

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Paper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP99-7.

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Date of creation: Jul 1999
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Handle: RePEc:iie:wpaper:wp99-7

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References

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  1. Golan, Amos & Judge, George & Robinson, Sherman, 1994. "Recovering Information from Incomplete or Partial Multisectoral Economic Data," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 541-49, August.
  2. Marcus Noland & Sherman Robinson & Tao Wang, 1999. "Modeling Korean Unification," Working Paper Series WP99-7, Peterson Institute for International Economics.
  3. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January.
  4. Boltho, Andrea & Carlin, Wendy & Scaramozzino, Pasquale, 1996. "Will East Germany Become a New Mezzogiorno?," CEPR Discussion Papers 1256, C.E.P.R. Discussion Papers.
  5. Thimann, C & Breitner, M-H, 1995. "Eastern Germany and the Conflict between Wage Adjustment, Investment and Employment : A Numerical Analysis," Papers 02, American Institute for Contemporary German Studies-.
  6. Wolfgang Keller, 1997. "From Socialist Showcase to Mezzogiorno? Lessons on the Role of Technical Change from East Germany's Post-World War II Growth Performance," Development and Comp Systems 9707002, EconWPA.
  7. Bernhard Herz & Werner Roger, 1995. "Economic growth and convergence in Germany," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(1), pages 132-143, March.
  8. Marcus Noland & Sherman Robinson & Tao Wang, 1999. "Rigorous Speculation: The Collapse and Revival of the North Korean Economy," Working Paper Series WP99-1, Peterson Institute for International Economics.
  9. Hughes Hallett, Andrew & Ma, Yue, 1992. "East Germany, West Germany, and their Mezzogiorno Problem: An Empirical Investigation," CEPR Discussion Papers 623, C.E.P.R. Discussion Papers.
  10. Hans-Werner Sinn, 1995. "Staggering along: wages policy and investment support in East Germany," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(4), pages 403-426, December.
  11. Marcus Noland & Sherman Robinson & Ligang Liu, 1999. "The economics of korean unification," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 3(3), pages 255-299.
  12. Hughes Hallett, A & Ma, Y & Melitz, J, 1995. "Unification and the Policy Predicament in Gemany," Papers 01, American Institute for Contemporary German Studies-.
  13. Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 1998. "Estimating a social accounting matrix using cross entropy methods:," TMD discussion papers 33, International Food Policy Research Institute (IFPRI).
  14. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
  15. Burda, Michael C & Funke, Michael, 1993. "Eastern Germany: Can't We Be More Optimistic?," CEPR Discussion Papers 863, C.E.P.R. Discussion Papers.
  16. Marcus Noland & Sherman Robinson & Li-Gang Liu, 1998. "The Costs and Benefits of Korean Unification," Working Paper Series WP98-1, Peterson Institute for International Economics.
  17. Noland, Marcus & Robinson, Sherman & Scatasta, Monica, 1997. "Modeling economic reform in North Korea," Journal of Asian Economics, Elsevier, vol. 8(1), pages 15-38.
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Cited by:
  1. Marcus Noland & Sherman Robinson & Tao Wang, 1999. "Modeling Korean Unification," Working Paper Series WP99-7, Peterson Institute for International Economics.
  2. Sato, Sumie & Fukushige, Mototsugu, 2011. "The North Korean economy: Escape from import-led growth," Journal of Asian Economics, Elsevier, vol. 22(1), pages 76-83, February.
  3. Funke, Michael & Strulik, Holger, 2005. "Growth and convergence in a two-region model: The hypothetical case of Korean unification," Journal of Asian Economics, Elsevier, vol. 16(2), pages 255-279, April.
  4. Kim, Byung-Yeon & Kim, Suk Jin & Lee, Keun, 2007. "Assessing the economic performance of North Korea, 1954-1989: Estimates and growth accounting analysis," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 564-582, September.
  5. 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).
  6. Noland, Marcus & Robinson, Sherman & Wang, Tao, 2000. "Rigorous Speculation: The Collapse and Revival of the North Korean Economy," World Development, Elsevier, vol. 28(10), pages 1767-1787, October.

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