North Korea's Trade Expansion with Western Countries in the Early 1970's and Its Implications on North Korea's Current Attempts at Economic Rehabilitation

Abstract

The purpose of this study is to provide the analytical background of North Korea's trade expansion with Western countries in the early 1970's and examine in depth the resulting impacts on the North Korean economy. Indeed, this study explores the implications of the mechanism and consequences of North Korea's increased trade with Western countries in the 1970's for the current situation of the country's trade expansion based on the rapid increase in imports and large trade deficit. As a result of researching North Korea's economic trajectory during the 1970's within this focus, this study asserts that, despite some positive aspects, North Korea's rapid increase of foreign trade in recent years possesses the immanent possibility of generating serious obstacles to the process of economic recovery. In this vein, this paper intends to explore some policy options North Korea should choose in order to create conditions conducive to economic rehabilitation and prevent the recurrence of similar situation as experienced in the 1970's.