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The North Korean economy seen by satellite: Estimates of national performance, regional gaps based on nighttime light

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  • Kim, Kyoochul

Abstract

External estimates must be used to assess North Korea’s economy because Pyongyang authorities withhold economic statistics. The Bank of Korea’s figures are considered the most widely employed estimates. However, they have several limitations. This paper estimates North Korea’s economic growth over a more than 20-year period, by analyzing the nighttime lighting, as recorded by orbiting satellites. The data is more objective and reliable than other data used to evaluate the North Korean economy. It indicates steady growth after 2000, contradicting Bank of Korea estimates. The methodology also has the advantage of being able to gauge regional economic activity. Performance varied widely among regions, the result of internal factors such as market activities and external factors such as trade with China and economic cooperation with South Korea.

Suggested Citation

  • Kim, Kyoochul, 2022. "The North Korean economy seen by satellite: Estimates of national performance, regional gaps based on nighttime light," Journal of Asian Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:asieco:v:78:y:2022:i:c:s1049007821001342
    DOI: 10.1016/j.asieco.2021.101405
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    References listed on IDEAS

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    1. Kim,Byung-Yeon, 2017. "Unveiling the North Korean Economy," Cambridge Books, Cambridge University Press, number 9781107183797.
    2. Marcus Noland, 2000. "Avoiding the Apocalypse: The Future of the Two Koreas," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 94, October.
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    4. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    5. Zhao, Naizhuo & Currit, Nate & Samson, Eric, 2011. "Net primary production and gross domestic product in China derived from satellite imagery," Ecological Economics, Elsevier, vol. 70(5), pages 921-928, March.
    6. Yingyao Hu & Jiaxiong Yao, 2019. "Illuminating Economic Growth," IMF Working Papers 2019/077, International Monetary Fund.
    7. Kim, Byung-Yeon & Kim, Suk Jin & Lee, Keun, 2007. "Assessing the economic performance of North Korea, 1954-1989: Estimates and growth accounting analysis," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 564-582, September.
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    Cited by:

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    More about this item

    Keywords

    North Korea’s economy; Satellite nighttime light; Regional economic gap; North Korea-China trade; Inter-Korean economic cooperation;
    All these keywords.

    JEL classification:

    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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