The economic development and international trade of North Korea using the factor analysis method

Abstract

In this paper, after reviewing the characteristics of North Korean statistics, I examined how North Korea's trade affects its growth using empirical analyses. There have been many studies that have shown trade has affected economic growth, but there have been few empirical studies on North Korea's case. Cointegration test, regression analysis, and factor analysis were used. The empirical results suggest that even considering economic fluctuations, North Korea's trade has not shown a significant impact on growth. Keywords North Korea, Growth, Trade, Cointegration test, Factor analysis