IDEAS home Printed from
   My bibliography  Save this paper

Does Economic Sanction Work? The Case of North Korea


  • Jinhwan Oh



Based on the gravity model of international trade, this paper initially analyzes North Korea's international trade pattern, which tends to follow the prediction of the gravity model: a positive relationship between trade and trading partners' GDP, and negative relationship between trade and distance. This pattern has been consistently preserved over recent several years in spite of economic sanctions by various countries, implying that those sanctions do not significantly change North Korea's trade environment. This result lies on the substitutability of goods among countries. For example, North Korea has traded increasingly larger amount of goods with China and Korea since Japan imposed sanctions against Pyeongyang. Unless all countries strictly agree on imposing sanctions against a specific country, which is almost impossible to be realized, imposing economic sanction will turn out to be unsuccessful.

Suggested Citation

  • Jinhwan Oh, 2011. "Does Economic Sanction Work? The Case of North Korea," ERSA conference papers ersa10p621, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p621

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Caruso Raul, 2003. "The Impact of International Economic Sanctions on Trade: An Empirical Analysis," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 9(2), pages 1-36, April.
    2. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc.
    3. Han Paul S., 2004. "Report on Critical Dimensions and Problems of the North Korean Situation (1996-2004)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 10(3), pages 1-43, December.
    4. David Hummels & James Levinsohn, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 799-836.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p621. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.