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This study analyses industrial structural interdependency between North Korea and China using international I-O table. China is the important trade partner of North Korea. In particular, trade volume between two countries has been increasing by more than 5 times since 2000. Also North Korea's trade deficit with China has been increasing. Economic links between two countries are expected to be more intense with "the development plan in Northeast China province" and market growth in North Korea. Major export products of North Korea are from agricultural and mining sector, but the export output multiplier for seven production sectors in North Korea is very low. Through which indexes of export sensitivity and import power of dispersion against to Northeast China are computed, North Korea has a comparatively large likelihood of induced export in mining and import in mining, light industry, heavy industry. North Korea's trade deficit with China is higher in mining and heavy industry sector than other sectors.


This study analyses industrial structural interdependency between North Korea and China using international I-O table. China is the important trade partner of North Korea. In particular, trade volume between two countries has been increasing by more than 5 times since 2000. Also North Korea's trade deficit with China has been increasing. Economic links between two countries are expected to be more intense with "the development plan in Northeast China province" and market growth in North Korea. Major export products of North Korea are from agricultural and mining sector, but the export output multiplier for seven production sectors in North Korea is very low. Through which indexes of export sensitivity and import power of dispersion against to Northeast China are computed, North Korea has a comparatively large likelihood of induced export in mining and import in mining, light industry, heavy industry. North Korea's trade deficit with China is higher in mining and heavy industry sector than other sectors.