North Korean economic development : special economic zones, global value chains, and new structural economics

다국어 초록 (Multilingual Abstract)

The aim of this research is to establish a plan of development for the North Korean economy by first examing the state of the economy and its obstacles to development. This is followed by an examination of a theoretical model of development known as “new structural economics,” which is augmented with a focus on special economic zones (SEZs) and global value chains (GVCs). The hope is that by identifying those areas in which the North Korean economy is deficient, those in which it has strength, and those areas in which it can readily improve, a path can be laid out that has a foundation in previous economic research, theoretical models, and the practical experience of other developing countries. This paper highlights the deficiencies of the North Korean economy as an over-emphasis on heavy industry, Juche and xenophobia, and a limited economic development strategy. An analysis of new structural economics, North Korea’s potential in tapping into GVCs, and an examination o f the role of Rason SEZ provide the information necessary to give the path that I suggest in the final chapter. The contributions of this research are in its novelty: there has not been any work in English since the end of the Cold War that has given such an in-depth analysis of the obstacles to development in the North Korean economy or given such a lengthy path to development. This paper further contributes to research on developmental economics by implementing the method of new structural economics using a practical example.