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.
Economics | International Economics
Asian Economic Papers
Massachusetts Institute of Technology Press (MIT Press): Economics Titles
KIM, Byung-Yeon and KOH, Yumi.
The informal economy and bribery in North Korea. (2011). Asian Economic Papers. 10, (3), 104-117. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/2150
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