North Korea is one of the most closed and secretive societies in the world. Despite a high level of interest from the outside world, we have very little detailed information about how the country functions economically. In this valuable book for both the academic and policy-making circles, Byung-Yeon Kim offers the most comprehensive and systematic analysis of the present day North Korean economy in the context of economic systems and transition economics. It addresses what is really happening in the North Korean economy, why it has previously failed, and how the country can make the transition to a market economy. It takes advantage not only of carefully reconstructed macro data but also rich, new data at the micro level, such as quantitative surveys of North Korean refugees settled in South Korea, and the surveys of Chinese companies that interact heavily with North Korea.

A comprehensive, systematic analysis of the North Korean economy, exposing its hidden workings through quantitative data analysis and surveys.

Introduction 1. An evaluation of the socialist economy Economic systems The performance of the socialist economy Households in socialist economies Firms in socialist economies Sustainability and collapse of the socialist economy 2. The North Korean economy The North Korean socialist economic system Performance of the North Korean socialist economic system Households: surviving in informal markets Firms: surviving with markets and foreign trade Regime stability in North Korea: corruption and markets 3. Transition of the North Korean economy An overview of the transition experience Macroeconomic stabilisation and liberalisation Privatisation and new entry of firms Economic integration with South Korea Conclusion