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The End of Import-Led Growth? North Korean Evidence

Author

Listed:
  • 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.

Suggested Citation

  • 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.
    • Handle: RePEc:osk:wpaper:0738
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    References listed on IDEAS

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    2. Teboho Jeremiah Mosikari, 2013. "The Relationship between Trade Openness and GDP Growth Rate: The Case of South Africa (1994Q1-2008Q4)," Journal of Economics and Behavioral Studies, AMH International, vol. 5(10), pages 669-677.
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    More about this item

    Keywords

    North Korea; import-led growth; export-led growth; causality test.;
    All these keywords.

    JEL classification:

    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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