The Effect of Economic Sanction against North Korea on North Korea-China Trade

This study attempts to scrutinize the effectiveness of the international economic sanction on North Korea by analyzing the determinants of the North Korea-China trade with Chinese Customs House data classified under general, border, processing, bonded warehouse. The result shows that after international economic sanctions, North Korea-China trade was increased across types of trade. In particular, sanction-sensitive items were increased after sanctions and China also weakened the effectiveness of sanctions. To put it concretely, North Korea's food and fuel imports from china increased in processing and border trade. In the case of luxury good, it was increased in general trade. Strategy goods (weaponry) increased only in bonded warehouse trade. For China's import from North Korea, food and fuel were increased in total, border and bonded warehouse trade. Considering the features of each type of trade, these increase are presumed to have been playing a decisive role in weakening the effect of international sanction on North Korea.