KOREAN REUNIFICATION: HOW IT MIGHT COME ABOUT AND AT WHAT COST

Charles Wolf

Defence and Peace Economics, 2006, vol. 17, issue 6, 681-690

Abstract: This paper considers three broad scenarios for Korean reunification. These are reunification through system evolution and adaptation, through collapse and absorption and through conflict. A simulation model is used to estimate the costs of Korean reunification, which span a range between $50 billion and $700 billion, and a median estimate between $330 billion and $350 billion, about $60-70 billion per annum over five years. Various ways of distributing these investment costs are outlined and the likely benefits of reunification are also assessed.

Date: 2006
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DOI: 10.1080/10242690601025690

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