We construct the Korean Integration Model (KIM), a two-country com - putable general equilibrium (CGE) model linking …. If factor mar - kets do not integrate, the macroeconomic impact on South Korea of economic integration with the North is … relatively small, while the effects on North Korea are large. With a monetary union and factor market integration, there is a sig …

This paper investigates the extent of integration of the transition economies into the world economy. We find that … hence high costs of transport and transit) is another reason for the lack of integration. In SEE these factors play a lesser … role and the gravity model is unable to fully explain the lack of integration, which we suggest is a legacy of the region …