The income effects of decentralization of population in Korea: an econometric investigation

• Kabsung KIM ^[1] ; Seoung-Hwan SUH ^[1] ; Injeon KIM ^[3] ; Mete FERIDUN ^[2]
  1. [1] Yonsei University

     Yonsei University

     Corea del Sur

     
  2. [2] Cyprus International University

     Cyprus International University

     Chipre

     
  3. [3] Yonsei Urban and Transportation Research Institute

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• Localización: Estudios Economicos Regionales y Sectoriales : EERS: Regional and sectoral economic studies : RSES, ISSN 1578-4460, Vol. 5, Nº. 1, 2005, págs. 21-38
• Idioma: inglés
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• Resumen

  • In Korea, the socio-economic imbalance between the Capital and non-Capital Regions has become a serious issue despite the various decentralization policies instituted since the 1960’s. This study aims at analyzing the effect of decentralization of population in the capital region on income, and revealing the difference in productivity between the Capital and non-capital regions. The analysis begins with an estimate of production functions by region. It then analyzes the changes to employment as population decreases in the Capital region, and the economic effects on regional production through the movement of employment in each region. The results show that, decentralization in the capital region would result in decrease national income in Korea.