This study basically seeks a model for the unification of North and South Korea and determinants of inter-Korean economic cooperation which is essential to the reunification of Korea. By examining each determinant of inter-Korean trade based upon the ...
This study basically seeks a model for the unification of North and South Korea and determinants of inter-Korean economic cooperation which is essential to the reunification of Korea. By examining each determinant of inter-Korean trade based upon the model developed in this study, alternatives and policy implications are to be suggested.
- Flexible reciprocal relationship(tit-for-tat strategy) between two Koreas is needed. Although the tit-for-tat strategy is the basic theme in the embracement policy South Korea maintains for the reunification, it should not be used as a tool for the confrontation with North Korea. Herewith national consensus on the general relations with North Korea should be drawn through the high degree of openness in policy making and implementation processes.
- Inter-dependent economic relationship between two Koreas should be developed and maintained further by increasing contacts and expanding mutual understanding in economic cooperations in a diverse and balanced way.
- Uniform politics-economy dichotomy policies are not recommended for the desirable economic cooperation in Korea. Rather, selective adoption and utilization of political factors is strongly encouraged. South Korean government should play a key role as a first mover to lead more active economic cooperation between two Koreas, because North-South economic cooperation is basically of public good and produce externalities.
- Friendly international cooperation with neighboring nations is necessary for the North-South economic cooperation, not only in order to help South Korean government disperse or share the danger of possible failure, but also in order to make North Korea participate in the economic cooperation more positively with increased trust.