The Impact of UN Sanctions on North Korea's Luxury Goods Imports
18 Pages Posted: 27 Nov 2017
Date Written: November 22, 2017
This paper aims to analyze the economic impacts of UN sanctions on North Korea’s banned luxury goods imports. The analysis is based on applying Difference-in-Differences Methods to the gravity model. The results show that North Korea’s luxury goods import patterns reflect the aforesaid model. The result of Difference-in-Differences shows that UN Resolutions 1695 and 1718 were ineffective in decreasing North Korea’s luxury goods imports. This paper also found that four countries, primarily China, accounted for 91.4% of North Korea’s luxury goods imports in 2007, and the share of North Korea’s luxury goods accounted for about 5.3% of North Korea’s overall imports.
Keywords: North Korea (DPRK), Economic Sanctions, Nuclear, United Nations
JEL Classification: F51, P2, D74
Suggested Citation: Suggested Citation