This brief analysis of the current external economic relations of the DPRK leads to a number of conclusions. First, the North Korean economy maintains very limited exposure to the outside world and, as a result, to external influence. In terms of volume...
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This brief analysis of the current external economic relations of the DPRK leads to a number of conclusions. First, the North Korean economy maintains very limited exposure to the outside world and, as a result, to external influence. In terms of volume North Korea's trade is minuscule, even in relation with the size of its economy. This is also the case for foreign direct investment inflows.
Secondly, although North Korea is less isolated than often thought, its trade and investment flows are very heavily polarized both geographically and sectorally, limiting de facto their potential impact. In contrast to what was the case during the Soviet era, North Korea's main economic partners are not ideological partners but neighboring economies, namely China and South Korea. They are major partners in trade as well as in FDI. Russia still plays a non negligible role but is in no way comparable to what was the case before the demise of the Soviet bloc.
Thirdly, North Korea's external ec
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