Economic Integration in East Asia: the Cases of SEZ in the PRC and the DPRK

Special economic zones is an economic tool that allows gradual and limited integration into global economy. Originating from the developed states, the policy was adopted by many developing counties and transitional economies. The PRC and the DPRK use special economic zones in order to prompt economic growth, elevate the standard of living and gain access to modern technologies. China has been exploiting this policy for nearly four decades and has worked out numerous types of economic zones. The country relied on abundant labor force, sustained stable economic relations with foreign investors in spite of political discrepancies and continuously adhered to the policy, which brought about positive results. North Korea attempted to launch its own SEZ but their efficiency is hampered by high competition with neighboring countries, strained relations with potential investors and lack of pre-ready facilities.