The Economic Impact of Korean Reunification on Major Trade Partners: An Empirical Analysis Based on the World Input–Output Tables |
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Authors: | Kyoji Fukao |
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Institution: | Institute of Economic Research, Hitotsubashi University, Tokyo, Japan |
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Abstract: | Using the 2011 Word Input–Output Database (WIOD), we examine the economic impact of Korean reunification on Japan, China, the United States, and Russia by industry. We conduct a standard Leontief-type analysis with the assumption of supply constraints in the unified Korea. The results of our analysis show that Korea’s major trade partners would experience a substantial increase in GDP and employment through Korea reunification. In particular, we found that China would benefit the most from Korea reunification. |
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Keywords: | Korean reunification world input–output tables |
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