Development through Integration

Research Note
Published on 2 March 2021


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. The evolution of inequality depends crucially on migration policies, as well as worker skills and production technology.


Sang Yoon (Tim) Lee

University of Mannheim

Yongseok Shin

Washington University in St. Louis