What would happen if a poor country were to be integrated with a richer neighbor? Our analysis of the reunification of South and North Korea shows convergence of income between countries but divergence within.
A unique study collects North Korean data and estimates a structural model to simulate the potential reunification and integration scenario for the economies of North and South Korea.
An estimation of the aggregate economic harm caused by cartels in developing countries provides evidence that it can be substantial irrespective of the scale of the economy in question.
