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The Informal Economy and Bribery in North Korea

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  • Byung-Yeon Kim

    (Department of Economics Seoul National University 599 Gwanak-ro, Gwanak-gu, Seoul 151-746 Republic of Korea)

  • Yu Mi Koh

    (University of Pennsylvania 3718 Locust Walk McNeil Building 160 Philadelphia, PA 19104 USA)

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.

Suggested Citation

  • Byung-Yeon Kim & Yu Mi Koh, 2011. "The Informal Economy and Bribery in North Korea," Asian Economic Papers, MIT Press, vol. 10(3), pages 104-117, Fall.
  • Handle: RePEc:tpr:asiaec:v:10:y:2011:i:3:p:104-117
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    Cited by:

    1. Christine Siew-Pyng Chong & Suresh Narayanan, 2017. "The Size and Costs of Bribes in Malaysia: An Analysis Based on Convicted Bribe Givers," Asian Economic Papers, MIT Press, vol. 16(1), pages 66-84, Winter/Sp.

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