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A dictator’s retort to economic sanctions: Evidence from North Korea

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  • Park, Youngseok

Abstract

This paper examines how economic sanctions affect internal resource allocation in North Korea. Drawing on insights from the political economy of authoritarian regimes, I propose that as sanctions intensify, the regime reallocates resources to maintain elite loyalty at the expense of weapons development. Using satellite-based nighttime lights data as a proxy for regional economic activity, I find that sanctions increase light intensity in elite-dominated areas like Pyongyang, while brightness declines around nuclear facilities. These findings suggest that sanctions may unintentionally reinforce regime stability by redirecting resources toward the ruling elite.

Suggested Citation

  • Park, Youngseok, 2025. "A dictator’s retort to economic sanctions: Evidence from North Korea," European Journal of Political Economy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:poleco:v:89:y:2025:i:c:s0176268025000928
    DOI: 10.1016/j.ejpoleco.2025.102732
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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