Abstract
Discussion of unification was for several decades focused on the costs rather than the benefits for Korea, until reports emphasizing the latter were published by Goldman Sachs (2009) and various Korean think tanks over the past four to five years. Although these studies can be evaluated positively in pointing out the benefits of unification rather than the concerns about the costs, several questions can be raised. This paper tries to evaluate the quality and credibility of existing studies and suggests a new approach for estimating the impact of unification. It proposes a computational general equilibrium (CGE) model to be based on the social accounting matrix (SAM) and input-output (IO) table for the North Korean economy, in order to produce more reliable estimates of the benefits and costs of unification and the impact of various cooperative activities between the two Koreas.
Keywords
Citation
Cheong, I. (2015), "Estimation of Benefits and costs of Korea’s unification: A critical Review", Journal of International Logistics and Trade, Vol. 13 No. 1, pp. 31-47. https://doi.org/10.24006/jilt.2015.13.1.31
Publisher
:Emerald Publishing Limited
Copyright © 2015 Jungseok Research Institute of International Logistics and Trade
License
This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited