TY - JOUR
T1 - Growth and convergence in a two-region model
T2 - the hypothetical case of Korean unification
AU - Funke, Michael
AU - Strulik, Holger
N1 - JEL Classification: O41, O52, H31, H40
PY - 2005
Y1 - 2005
N2 - The paper discusses the impact and implications of Korean unification by setting up a two-region endogenous growth model. The numerical solutions are based on the formal analytical model, and have been calibrated so that they reflect the observed features of the North and South Korean economies. The numerical solutions provide evidence about the speed of convergence and the large amount of interregional transfers that are required to make the North Korean economy economically viable. We also model the impact of foreign aid, migration and borrowing abroad for the transition process
AB - The paper discusses the impact and implications of Korean unification by setting up a two-region endogenous growth model. The numerical solutions are based on the formal analytical model, and have been calibrated so that they reflect the observed features of the North and South Korean economies. The numerical solutions provide evidence about the speed of convergence and the large amount of interregional transfers that are required to make the North Korean economy economically viable. We also model the impact of foreign aid, migration and borrowing abroad for the transition process
U2 - 10.1016/j.asieco.2005.01.003
DO - 10.1016/j.asieco.2005.01.003
M3 - Journal article
VL - 16
SP - 255
EP - 279
JO - Journal of Asian Economics
JF - Journal of Asian Economics
SN - 1049-0078
IS - 2
ER -