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Openness and Growth in North Korea: Evidence from Time--Series Data


  • Jang C. Jin

    (Chinese University of Hong Kong, Shatin, NT, Hong Kong)


New growth theories suggest that an economy"s increased openness raises domestic productivity, and hence must have a positive effect on the living standards of a nation. The North Korean economy, isolated from world trade for several decades and its economy devastated, provides a test for this implied causality. The possibility that the ultimate source of declining real gross national product since 1974 is a decrease in trade liberalization of the North Korean economy cannot be rejected. The results are more definitive when the sample is split into two subperiods, pre--1974 and post--1974. These findings are generally consistent with the conventional model in which free trade stimulates economic growth. Copyright Blackwell Publishing Ltd. 2003

Suggested Citation

  • Jang C. Jin, 2003. "Openness and Growth in North Korea: Evidence from Time--Series Data," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 18-27, February.
  • Handle: RePEc:bla:reviec:v:11:y:2003:i:1:p:18-27

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    References listed on IDEAS

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    Cited by:

    1. Shahbaz, Muhammad, 2012. "Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan," Economic Modelling, Elsevier, vol. 29(6), pages 2325-2339.
    2. 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).
    3. Ruiz Estrada, Mario Arturo & Park, Donghyun, 2008. "Korean unification: How painful and how costly," Journal of Policy Modeling, Elsevier, vol. 30(1), pages 87-100.
    4. Talberth, John & Bohara, Alok K., 2006. "Economic openness and green GDP," Ecological Economics, Elsevier, vol. 58(4), pages 743-758, July.
    5. Mario Arturo Ruiz Estrada & Donghyun Park & Ibrahim Ndoma & Jung Suk Kim, 2016. "Korean unification prospects: an assessment through the BDN-model," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(3), pages 1059-1072, May.

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