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Special Economic Zones in Transition Economies and its Implications for North Korea - based on the demand and supply of Special Economic Zones in Poland and China

Lee, Sang Jun 1 Lee Sung Su 1

1국토연구원

Accredited

ABSTRACT

This study aims at suggesting policy implications of special economic zones in transition economies for North Korea based on the lessons from the demand and supply of special economic zones. Two special economic zones of Poland and China are reviewed. In this study, the demand and supply of Special Economic Zones of Poland and China are defined as the main factors introducing policy implications for North Korea. Two cases provide a successful example of special economic zone, which has important implications for North Korea. Special economic zones in Poland and China were implemented as a policy tool to achieve the goals of attracting foreign investment. The Katowice special economic zone in Poland and Shenzhen special economic zone in China give some policy implications for North Korea as follows. First, investment demands of foreign companies must be considered as the most important factor for developing the special economic zones in North Korea. Second, the active role of the North Korean government is an important factor for the success of the special economic zones. The North Korean government must render a large financial assistance for the development of transport, energy and communication facilities in the special economic zones. North Korea has to be much more active in marketing special economic zones in addition to building up physical and institutional infrastructure. In order to attract foreign direct investment, it would be better to develop small and medium size industrial parks in the areas, where infrastructure is relatively well endowed, rather than large-scale special economic zones.

Citation status

* References for papers published after 2023 are currently being built.