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Title: |
The Effects of Economic Integration between North and South Korea: A
Computable General Equilibrium Analysis |
| Author: |
Chang, Suk-In |
| Author
Affiliation: |
Korea Institute
for Industrial Econ & Trade |
| Source: |
International Economic Journal, Winter 1997, v. 11, no. 4, pp. 1-16 |
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Publication Date: |
Winter 1997 |
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Abstract: |
This paper investigates the potential
impact of economic integration between North and South Korea on the
economy of South Korea. A nine-sector, trade-focused, computable general
equilibrium (CGE) model is constructed. The model is used to quantify
the likely consequences of various forms of economic integration between
the two Koreas. The simulation results indicate that unless factor
movement (labor inflow from the North, and capital outflow to the same)
are considered, any preferential trading system between the two Koreas
has an inconsequential impact (positive or negative, aggregate or
sectoral) from the viewpoint of the South. Much greater effects,
however, follow from factor movements. |
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