IDEAS home Printed from https://ideas.repec.org/p/bok/wpaper/1614.html
   My bibliography  Save this paper

Estimation of Formal and Informal Sectors in Social Accounting Matrix for the North Korean Economy (in Korean)

Author

Listed:
  • Jiyoung Choi

    (Economic Research Institute, The Bank of Korea)

Abstract

The expansion of the informal sector is one of the most representative changes in North Korean economy since the 2000s. This paper estimates a social accounting matrix(SAM) that distinguishes between formal and informal activities of North Korea during the year of 2013 in order to understand its dual economic structure. As the estimation results, the share of informal sector in North Korea is estimated at 18.5% for factor income and 28.5% for final demand. Also, it indicates the production inducement effect of the informal sector in both household consumption and investment based on the Input-Output analysis. Increasing informal investment expenditure could contribute to encouraging the entire North Korean economy because the output multiplier of investment expenditure is much higher than that of household spending. Lastly it is worth to note that these estimation results are based on relatively rough assumptions due to the limited statistics of North Korean economy. Therefore, the results could be changed in case different assumptions are introduced regarding informal economic activities in North Korea.

Suggested Citation

  • Jiyoung Choi, 2016. "Estimation of Formal and Informal Sectors in Social Accounting Matrix for the North Korean Economy (in Korean)," Working Papers 2016-14, Economic Research Institute, Bank of Korea.
    • Handle: RePEc:bok:wpaper:1614
    as

    Download full text from publisher

    File URL: https://www.bok.or.kr/ucms/cmmn/file/fileDown.do?menuNo=600341&atchFileId=ENG_0000000001019473&fileSn=1
    File Function: Working Paper, 2016
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Warwick J. McKibbin & Jong Wha Lee & Weifeng Liu & Cheol Jong Song, 2018. "Modeling the Economic Impacts of Korean Unification," Asian Economic Journal, East Asian Economic Association, vol. 32(3), pages 227-256, September.

    More about this item

    Keywords

    Social accounting matrix; Informal economy; North Korean economy; Production inducement Effects;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bok:wpaper:1614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Economic Research Institute (email available below). General contact details of provider: https://edirc.repec.org/data/imbokkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.