North Korea's External Economic Relations

Stephan Haggard () and Marcus Noland
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Stephan Haggard: University of California, San Diego Graduate School of International Relations and Pacific Studies

No WP07-7, Working Paper Series from Peterson Institute for International Economics

Abstract: North Korea's international transactions have grown since the 1990s famine period. Illicit transactions appear to account for a declining share of trade. Direct investment is rising, but the county remains significantly dependent on aid to finance imports. Interdependence with South Korea and China is rising, but the nature of integration with these two partners is very different: China's interaction with North Korea appears to be increasingly on market-oriented terms, while South Korea's involvement has a growing noncommercial or aid component. These patterns have implications for North Korea's development, the effectiveness of UN sanctions, and its bargaining behavior in nuclear negotiations.

Keywords: North Korea; sanctions; political economy; aid; transitional economies (search for similar items in EconPapers)
JEL-codes: F14 F5 P3 (search for similar items in EconPapers)
Date: 2007-08
New Economics Papers: this item is included in nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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