On Korea: Academic Paper Series
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On Korea: Academic Paper Series 2007About On Korea: Academic Paper Series
In December 2006, KEI initiated our Academic Paper Series in which we commission up to 10 papers per year with diverse perspectives on original subjects of current interest to Korea watchers. This year-long program provides both leading Korea scholars and new voices from around the world to speak and write on trends and events affecting the Korean peninsula.
The global community has plainly noticed the critical role played by the People’s Republic of China (PRC) in inducing change in North Korea’s diplomatic behavior, particularly with respect to the recent international crisis created by North Korea’s pursuit of a nuclear weapons program. Less attention has been given, however, to China’s powerful influence over North Korean behavior on the economic front. As it turns out, China’s influence on North Korea in the economic sphere, while subtle, has been considerable, extending beyond the simple empirical fact that China is the most important investment and trade partner for North Korea. China has, in fact, had an important impact on North Korean domestic economic policy, as a model and as a catalyst for the modest changes that have taken place despite North Korea’s extreme regime rigidity and limited state capacity.