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What do we know about poverty in North Korea?

Economics

What do we know about poverty in North Korea?

J. C. Cuaresma, O. Danylo, et al.

This groundbreaking study reveals alarming estimates of absolute poverty rates in North Korea, suggesting nearly 60% of the population may live in extreme poverty as of 2018. Using innovative remote-sensed night-time light intensity data, researchers have uncovered critical shifts in income dynamics from 2012 to 2018. The analysis, conducted by Jesús Crespo Cuaresma, Olha Danylo, Steffen Fritz, Martin Hofer, Homi Kharas, and Juan Carlos Laso Bayas, challenges previous perceptions of North Korea's economic landscape.

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Playback language: English
Abstract
Reliable quantitative information on the North Korean economy is scarce. This study provides the first estimates of absolute poverty rates in North Korean subnational regions by combining remote-sensed night-time light intensity data with estimated income distributions. Results indicate that the share of persons living in extreme poverty in North Korea may be larger than previously thought, estimating a poverty rate of around 60% in 2018 and high income volatility from 2012-2018. Income per capita estimates declined significantly from 2012 to 2015, recovering since 2016. Subnational estimates reveal a shift in regional income dynamics; divergence dominated the first half (2012-2015), followed by convergence in the second half (2016-2018).
Publisher
Palgrave Communications
Published On
Jul 01, 2020
Authors
Jesús Crespo Cuaresma, Olha Danylo, Steffen Fritz, Martin Hofer, Homi Kharas, Juan Carlos Laso Bayas
Tags
North Korea
poverty rates
income dynamics
night-time light data
economic analysis
regional income
extreme poverty

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