THE IMPACT OF RURAL OUTMIGRATION ON REGION OF ORIGIN IN KOREA*

Bun Song Lee and Joseph M. Phillips

Review of Urban & Regional Development Studies, 1994, vol. 6, issue 1, 22-41

Abstract: To assess the impact of rural outmigration on regions of origin, this paper borrows from international trade theory to develop a model of rural†to†urban migration. Borrowing from theories of nontraded goods and Dutch Disease, a model is developed for application to Korea. The model finds that rural outmigration can be detrimental to the rural sector when outmigration reduces farm profitability and triggers deterioration in the rural service sector. Farm profitability falls because of rising labor costs that cannot be passed on to consumers. The rural service sector falters when outmigration reduces market demand while raising input costs. County (kun) level Korean census data are used to test the model.

Date: 1994
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