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Security crisis and economic interdependence : a case study of inter-Korean trade (2002-2006)

Modern security studies have demonstrated that military insecurity or confrontation create crucial obstacles in trade relationships between states. Unlike this widely accepted conclusion, the trade relationship between the ROK and the DPRK from 2002 to 2006 showed a stable growth despite increasingly hostile political confrontation and military tension caused by the North Korean nuclear program. This study analyzes under what conditions the security instability did not undermine economic interdependence and which factors predominantly affected the actors' behavior by focusing on South Korean SMEs. It will conclude that substantial change of inter-Korean relations after the summit talks in 2000 enabled the SMEs to continue to engage with the DPRK under the nuclear crisis. In terms of what actually motivated SMEs in these transactions, it will argue that South Korean businessmen's desperate desire to took for lower-cost production provided a key driving force for them to risk the military instability. This study will substantiate this argument by providing a result of structured survey of South Korean entrepreneurs who actually were involved in the inter-Korea trade in this particular period. By analyzing how security agenda and economic interest relates each other, this study will overcome either security-dominated or economy-centered bias in capturing the changed essence of inter-Korean relations.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:541160
Date January 2010
CreatorsSung, Ki-Young
PublisherUniversity of Warwick
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttp://wrap.warwick.ac.uk/55779/

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