North Korea has been regarded as the least likely place to attract foreign investors due to its poor infrastructure, policy reversals, and totalitarian regime. However, the recent growth of Chinese direct investment in North Korea has drawn much attention due to its implications for the North Korean economy and regional stability. This research provides an analytical framework by considering two fundamental issues that any foreign investor takes into account when making an investment decision: property rights protection and profitability. It examines how recent changes have influenced these two issues, which, in turn, shaped the incentive structure of Chinese private investors.
Bibliographical noteFunding Information:
This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government [NRF-2013S1A5A8024045]; the POSCO TJ Park Foundation's Research Grant for Asian Studies [2013-11-0111]
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Sociology and Political Science