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The Informal Economy and Bribery in North Korea

Byung-Yeon Kim and Yu Mi Koh
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Yu Mi Koh: University of Pennsylvania 3718 Locust Walk McNeil Building 160 Philadelphia, PA 19104 USA

Asian Economic Papers, 2011, vol. 10, issue 3, pages 104-117

Abstract: This paper uses the data of 227 North Korean refugees who have settled in South Korea to investigate the relationship between working in the informal economy (market component of the economy) and bribe-giving, and between bribe-giving and the number of hours worked in the formal sector (planned component of the economy). The first relationship is positive, and the second relationship is negative. These results imply that widespread informal economy activities in North Korea have been undermining the socialist regime through bribery. © 2011 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Date: 2011
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