Abstract
The economic zone of Rajin-Seonbong (Raseon) is located at the north-eastern border of North Korea, adjacent to China and Russia. Although its attractiveness to foreign investors has remained limited since its creation in 1991, Raseon is of growing interest as a transit port for Russian and Chinese trade. This paper reviews some theories on the constraints and advantages of remotely located ports, arguing that limited economic base can be overcome by a strategy based on transhipment flows to and from China, South Korea, Russia and Japan. In particular, it develops the idea that economic factors, such as remoteness from the nation’s core region, are not sufficient to explain the uneven success of the project. More likely is the mismatch between local industries and port facilities. Unlike the Chinese free-trade zone experiment, port and logistics development in North Korea may take place prior to industrial development, strengthening Raseon as a potential gateway and growth pole in Northeast Asia.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.