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Country survey XVIII: The two Koreas' defence economy

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  • Jun Sik Bae

Abstract

This country survey briefly outlines the defence and economic background of the two Koreas and the security environment in the Korean Peninsula. It shows how defence spending to deter a potential North Korean attack has crowded-out the South Korean civilian economy and considers the possibility of arms control between the two adversaries. The military capabilities of both countries are described and empirical results are presented on the arms race between the two Koreas since 1963 using a Richardson action-reaction model. The development of South Korean defence industries and the problems of those industries are also examined, as well as the future prospects for inter-Korean relations and South Korea's defence policy.

Suggested Citation

  • Jun Sik Bae, 2003. "Country survey XVIII: The two Koreas' defence economy," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(1), pages 61-83.
    • Handle: RePEc:taf:defpea:v:14:y:2003:i:1:p:61-83
    DOI: 10.1080/10242690302934
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    References listed on IDEAS

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    1. Michael Chinworth, 2000. "Country Survey XIII: Japan's security posture and defense industry prospects," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(2), pages 369-401.
    2. World Bank, 2000. "World Development Indicators 2000," World Bank Publications - Books, The World Bank Group, number 13828.
    3. Deger, Saadet & Sen, Somnath, 1990. "Military Expenditure: The Political Economy of International Security," OUP Catalogue, Oxford University Press, number 9780198291411.
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    Cited by:

    1. Coram Alex & Noakes Lyle, 2010. "Super-Agents and the Problem of Controlling the Dynamics of Regional Arms Races," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-42, September.
    2. Carlos Pestana Barros, 2016. "Country survey: Angola," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 423-432, June.

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