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Famine in North Korea: Causes and Cures

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  • Noland, Marcus
  • Robinson, Sherman
  • Wang, Tao

Abstract

In this paper we start from incomplete data ridden with gross measurement errors to construct the underlying data base for a computable general equilibrium model (CGE) of the North Korean economy using cross-entropy estimation techniques. This model incorporates fragmentary information in a rigorous way and allows us to examine the implications of a number of alternative scenarios. First, we model a production-oriented recovery program as the restoration of flood-affected lands. We then model an external assistance program as the acquisition of all food aid necessary to attain the United Nations organizations' estimates of minimum human needs. The trade-oriented recovery program is modeled as a relaxation of agricultural import quotas and the importation of food on commercial terms. Finally, we model a systemic reform program as the elimination of quantitative restrictions on all external trade.
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Suggested Citation

  • Noland, Marcus & Robinson, Sherman & Wang, Tao, 2001. "Famine in North Korea: Causes and Cures," Economic Development and Cultural Change, University of Chicago Press, vol. 49(4), pages 741-767, July.
  • Handle: RePEc:ucp:ecdecc:v:49:y:2001:i:4:p:741-67
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    File URL: http://dx.doi.org/10.1086/452523
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    References listed on IDEAS

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    1. Coate, Stephen, 1989. "Cash versus direct food relief," Journal of Development Economics, Elsevier, vol. 30(2), pages 199-224, April.
    2. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    3. Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 1998. "Estimating a social accounting matrix using cross entropy methods:," TMD discussion papers 33, International Food Policy Research Institute (IFPRI).
    4. Golan, Amos & Judge, George & Robinson, Sherman, 1994. "Recovering Information from Incomplete or Partial Multisectoral Economic Data," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 541-549, August.
    5. Marcus Noland & Sherman Robinson & Ligang Liu, 1999. "The economics of korean unification," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 3(3), pages 255-299.
    6. Noland, Marcus & Robinson, Sherman & Wang, Tao, 2000. "Rigorous Speculation: The Collapse and Revival of the North Korean Economy," World Development, Elsevier, vol. 28(10), pages 1767-1787, October.
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    Cited by:

    1. Plümper, Thomas & Neumayer, Eric, 2009. "Famine Mortality, Rational Political Inactivity, and International Food Aid," World Development, Elsevier, vol. 37(1), pages 50-61, January.
    2. Haggard, Stephan & Noland, Marcus, 2009. "Famine in North Korea Redux?," Journal of Asian Economics, Elsevier, vol. 20(4), pages 384-395, September.
    3. Marcus Noland, 2004. "Famine and Reform in North Korea," Asian Economic Papers, MIT Press, vol. 3(2), pages 1-40.
    4. Sumie Sato & Mototsugu Fukushige, 2007. "The End of Import-Led Growth? North Korean Evidence," Discussion Papers in Economics and Business 07-38, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    5. Daniel Goodkind & Loraine West, 2001. "The North Korean Famine and Its Demographic Impact," Population and Development Review, The Population Council, Inc., vol. 27(2), pages 219-238.
    6. MoonJoong Tcha & Fiona Lio, 2002. "An Analysis of Food Aid and Altruism," Economics Discussion / Working Papers 02-19, The University of Western Australia, Department of Economics.
    7. Sato, Sumie & Fukushige, Mototsugu, 2011. "The North Korean economy: Escape from import-led growth," Journal of Asian Economics, Elsevier, vol. 22(1), pages 76-83, February.
    8. Chang, Yoonok & Haggard, Stephan & Noland, Marcus, 2009. "Exit polls: Refugee assessments of North Korea's transition," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 144-150, March.
    9. Noland, Marcus & Robinson, Sherman & Wang, Tao, 2000. "Rigorous Speculation: The Collapse and Revival of the North Korean Economy," World Development, Elsevier, vol. 28(10), pages 1767-1787, October.

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