Abstract
Using a growth model of productivity catch-up estimated from the 1990 German reunification, we study the economic impacts of a hypothetical economic integration between South Korea and North Korea on macro aggregates. By considering a range of scenarios, we analyze the impacts of labor migration and capital transfer policies.
Acknowledgements
We thank Gérard Roland for valuable inputs. Hyung Seok Kim acknowledges financial support from the Sogang University Research Grant of 2009 (200910038.01).