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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)

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    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

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    Article provided by Wiley Blackwell in its journal Review of International Economics.

    Volume (Year): 11 (2003)
    Issue (Month): 1 (February)
    Pages: 18-27

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    Handle: RePEc:bla:reviec:v:11:y:2003:i:1:p:18-27
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