The North Korean economy cannot sustain its population. Absent fundamental economic reforms, it will never be able to do so. Hence North Korea will require sizable external support for the foreseeable future. South Korea, China, Japan, and the United States have been willing to provide this...

Despite the passage of 50 years since an armistice ended military hostilities, the Korean peninsula remains divided, a Cold War vestige that seemingly has been unaf-fected by the evolution that has occurred elsewhere. If anything, US confrontation with North Korea--a charter member of its "axis...

We construct the Korean Integration Model (KIM), a two-country computable general equilibrium (CGE) model linking the North and South Korean economies. Using KIM, we simulate the impact of a customs union and an exchange rate unification of the two economies both in the presence and absence of...

This paper reviews a variety of documentary evidence to find evidence of the impact of private practices in discouraging inward foreign direct investment (FDI). Outside of a few countries, there is little documentary evidence that this is indeed a problem. Sectoral data on inward FDI from the...

Existing estimates of the costs of unification are inadequate for a number of reasons. In this paper we use a dynamic computable general equilibrium model to calculate South Korean and total peninsular income streams under a variety of unification (and non-unification) scenarios. We find that...

Financial systems in many developing countries are said to be "financially repressed". The government intervenes heavily in the economy, segmenting financial markets, placing artificial ceilings on interest rates, and directly allocating credit among enterprises as it sees fit. The likely result...

In this paper we use a multi-region computable general equilibrium model to analyze the impact of the Asian crisis thus far, highlighting the implications of possible future developments in Japan and China. The main conclusion is that depreciation of the yen would tend to have an adverse impact...

Barring a second war on the Korean peninsula, Korean economic integration will occur, be it through successful economic reform and opening in the North, collapse and absorption along the lines of the German case, or a period of "muddling through" in which the North Korean government makes...

For North Korea, product market integration would generate large welfare gains, sufficient to end the famine. Additional gains could be had through military demobilization. For the South, the impact of product market integration would be trivial, but the impact of factor market integration would...

Economic performance in Japan--the world's second largest economy, the largest in Asia, and the world's largest creditor country--is going from bad to worse. Growth has essentially been flat since 1992, and the economy is now shrinking at an annualized rate of more than 3 percent. The OECD...