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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 and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:0738
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0738.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hashim, Khairul & Masih, Mansur, 2014. "What causes economic growth in Malaysia: exports or imports ?," MPRA Paper 62366, University Library of Munich, Germany.
    2. Jaime Andrés Collazos & Pedro Luis Rosero, 2010. "¿Posee el Valle del Cauca una economía transformadora de importaciones orientadas a la Exportación?," DOCUMENTOS DE POLÍTICAS PÚBLICAS 006880, UNIVERSIDAD ICESI.
    3. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2013. "The Impact of Trade Integration with the European Union on Productivity in a Posttransition Economy: The Case of Polish Manufacturing Sectors," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(2), pages 84-104, March.

    More about this item

    Keywords

    North Korea; import-led growth; export-led growth; causality test.;

    JEL classification:

    • P27 - Economic Systems - - Socialist Systems 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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