Patterns of international trade and the industrial-led economic development of North Korea

Abstract

This article analyses the evolution of patterns of international trade and their role in the industrial-led economic development of North Korea. North Korea adhered to a strategy of building a ‘self-sufficient national economy’ until the 1980s. Its international trade depends heavily on China and South Korea. The share of natural resources in North Korea’s exports to China has recently increased. Inter-Korean trade has contributed to improvements in the trade balance and industrialisation of North Korea, which can be contrasted with the pattern of North Korea’s exports to China, i.e. the dominance of primary products. The economic sanctions regime against North Korea implemented by the United Nations has significantly reduced the country’s foreign exchange earnings. They are unlikely to be effective in affecting North Korea’s rate of economic growth in the short term, but could constrain industrial-led economic development in the long term.

Keywords:

• International trade
• economic development
• North Korea