The Impact of UN Sanctions on North Korea's Luxury Goods Imports

18 Pages Posted: 27 Nov 2017

See all articles by Hyung-Gon Jeong

Hyung-Gon Jeong

Korea Institute for International Economic Policy

Ho-Kyung Bang

Korea Institute for International Economic Policy

Date Written: November 22, 2017

Abstract

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

Jeong, Hyung-Gon and Bang, Ho-Kyung, The Impact of UN Sanctions on North Korea's Luxury Goods Imports (November 22, 2017). KIEP Research Paper, Staff Papers 17-02, Available at SSRN: https://ssrn.com/abstract=3076246 or http://dx.doi.org/10.2139/ssrn.3076246

Hyung-Gon Jeong (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Ho-Kyung Bang

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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