Does Economic Sanction Work? The Case of North Korea

Konferenzbeitrag

Based on the gravity model of international trade, this paper initially analyzes North Korea's international trade pattern, which tends to follow the prediction of the gravity model: a positive relationship between trade and trading partners' GDP, and negative relationship between trade and distance. This pattern has been consistently preserved over recent several years in spite of economic sanctions by various countries, implying that those sanctions do not significantly change North Korea's trade environment. This result lies on the substitutability of goods among countries. For example, North Korea has traded increasingly larger amount of goods with China and Korea since Japan imposed sanctions against Pyeongyang. Unless all countries strictly agree on imposing sanctions against a specific country, which is almost impossible to be realized, imposing economic sanction will turn out to be unsuccessful.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: 50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden

Classification and Topics

• Classification: Wirtschaft ; Economic Integration ; International Conflicts; Negotiations; Sanctions ; General Regional Economics (includes Regional Data) ; Transportation Economics: General
• Subject: International Trade ; Gravity Model ; Economic Sanctions ; North Korea

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Oh, Jinhwan
• Event: Veröffentlichung
• (who): European Regional Science Association (ERSA)
• (where): Louvain-la-Neuve
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/118931
• Last update: 10.03.2025, 11:43 AM CET