MULTIPLE EQUILIBRIA: IS BIG PUSH POSSIBLE? EVIDENCE FROM THE KAESONG INDUSTRIAL COMPLEX IN NORTH KOREA
This paper tests whether Big push of moving from lower level equilibrium(poverty trap) to higher one(industrialization) could occur in North Korea. The KAESONG Industrial Complex(KIC) in which some South Korean firms have just started doing business with North Korean labor, will be the main focus of...
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| Format: | Article |
| Language: | English |
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People & Global Business Association (P&GBA)
2007-09-01
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| Series: | Global Business and Finance Review |
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| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150623134924-RHVAN.pdf |
| Summary: | This paper tests whether Big push of moving from lower level equilibrium(poverty trap) to higher one(industrialization) could occur in North Korea. The KAESONG Industrial Complex(KIC) in which some South Korean firms have just started doing business with North Korean labor, will be the main focus of this paper. Using Murphy, Shelifer, and Vishny Model, it will be argued that successful launch of the KIC will bring a spillover effect to the entire country, leading to industrialization and ending its dependence on nuclear weapons as a bargaining. |
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| ISSN: | 1088-6931 2384-1648 |