Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices

This study examines the impact of COVID-19 and border closures on North Korean markets by comparing the prices of key goods—rice, gasoline, diesel, and exchange rates—with those in the Chinese and global markets. By analyzing market price data, we assess North Korea's economic connectivity to i...

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Main Authors: Seungho Jung, Dawool Kim, Kyoochul Kim
Format: Article
Language:English
Published: Elsevier 2024-07-01
Series:Asia and the Global Economy
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2667111524000203
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author Seungho Jung
Dawool Kim
Kyoochul Kim
author_facet Seungho Jung
Dawool Kim
Kyoochul Kim
author_sort Seungho Jung
collection DOAJ
description This study examines the impact of COVID-19 and border closures on North Korean markets by comparing the prices of key goods—rice, gasoline, diesel, and exchange rates—with those in the Chinese and global markets. By analyzing market price data, we assess North Korea's economic connectivity to international markets, particularly through China, and how pandemic-induced disruptions affected this linkage. Empirical results reveal that North Korean market prices for these goods generally maintain a long-term equilibrium relationship with international and Chinese prices, although the COVID-19 period disrupted this relationship. These findings suggest that North Korea's macroeconomic stability, especially price levels, is influenced by external factors through its economic ties with China.
format Article
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series Asia and the Global Economy
spelling doaj-art-95cd249d5db04545af77c49d3116549c2025-08-20T02:38:05ZengElsevierAsia and the Global Economy2667-11152024-07-014210009610.1016/j.aglobe.2024.100096Impact of COVID-19 and border closures on North Korean markets: A comparison with international pricesSeungho Jung0Dawool Kim1Kyoochul Kim2Incheon National University, South KoreaKorea Institute for International Economic Policy, South Korea; Corresponding author.Korea Development Institute, South KoreaThis study examines the impact of COVID-19 and border closures on North Korean markets by comparing the prices of key goods—rice, gasoline, diesel, and exchange rates—with those in the Chinese and global markets. By analyzing market price data, we assess North Korea's economic connectivity to international markets, particularly through China, and how pandemic-induced disruptions affected this linkage. Empirical results reveal that North Korean market prices for these goods generally maintain a long-term equilibrium relationship with international and Chinese prices, although the COVID-19 period disrupted this relationship. These findings suggest that North Korea's macroeconomic stability, especially price levels, is influenced by external factors through its economic ties with China.http://www.sciencedirect.com/science/article/pii/S2667111524000203COVID-19North Korean economyMarket pricesMarket exchange ratesLong-term equilibrium relationship
spellingShingle Seungho Jung
Dawool Kim
Kyoochul Kim
Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices
Asia and the Global Economy
COVID-19
North Korean economy
Market prices
Market exchange rates
Long-term equilibrium relationship
title Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices
title_full Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices
title_fullStr Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices
title_full_unstemmed Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices
title_short Impact of COVID-19 and border closures on North Korean markets: A comparison with international prices
title_sort impact of covid 19 and border closures on north korean markets a comparison with international prices
topic COVID-19
North Korean economy
Market prices
Market exchange rates
Long-term equilibrium relationship
url http://www.sciencedirect.com/science/article/pii/S2667111524000203
work_keys_str_mv AT seunghojung impactofcovid19andborderclosuresonnorthkoreanmarketsacomparisonwithinternationalprices
AT dawoolkim impactofcovid19andborderclosuresonnorthkoreanmarketsacomparisonwithinternationalprices
AT kyoochulkim impactofcovid19andborderclosuresonnorthkoreanmarketsacomparisonwithinternationalprices