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IZA Discussion Paper No. 17872
April 2025
Studying Economic Black Holes: Lessons from North Korea
Stephan Haggard, Kyoochul Kim, Munseob Lee

Some economies are “black holes” where reliable data is scarce due to government control, low capacity, or conflict. Despite these challenges, researchers have found ways to gather useful information. This paper draws on the literature on North Korea to review six key methods: satellite imagery, reports from aid agencies, trade data, prices, refugee surveys, and official documents. These sources are imperfect, and require close attention to research design and measurement error. Nonetheless, they demonstrate that it is possible to extract information from economic black holes and to draw meaningful insights about them.

Communications
Mark Fallak
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+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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