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The End of Import-Led Growth? North Korean Evidence

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Author Info
Sumie Sato (Graduate School of Economics, Kobe University)
Mototsugu Fukushige (Graduate School of Economics, Osaka university)
Abstract

In this paper, we investigate causal relationships among exports, imports, and economic growth in North Korea by using time series data for the period between 1964 and 2004. The empirical results show that there was Granger causality from imports to GNP in the first half of the period. However, there was a causal relationship from GNP to imports in the second half of the period. This implies that economic growth stimulates imports in North Korea. The North Korean economy escaped its import-led growth situation, which some socialist economies had experienced.

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Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 07-38.

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Length: 20 pages
Date of creation: Oct 2007
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Handle: RePEc:osk:wpaper:0738

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Related research
Keywords: North Korea import-led growth export-led growth causality test.

Find related papers by JEL classification:
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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