Interregional migration of value-added and its determinants in Korea

Jeongwan Kim

International Review of Public Administration, 2016, vol. 21, issue 1, 72-90

Abstract: In Korea, it is expected that the interregional migration of regionally produced value-added may be considerable because of the typical characteristics of the Korean residential pattern: high population density in urban areas and discrepancy between work and residence places. Such migrations bring about interregional external effects and regressivity, where value-added flows from provincial to urban areas. To cope with these inefficiencies of resource distribution, from a short-term perspective fiscal aid from the central government for the regions suffering from out-migration is needed to internalize the externality and to compensate for the regressivity. From a long-term perspective, balanced regional development policies are necessary to prevent such migrations. The purpose of this study is to provide information for the fiscal aid arrangements of the central government by analyzing the realities of interregional migration and to outline policy implications for regional balanced policies by examining the influential determinants of value-added migration.

Date: 2016
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DOI: 10.1080/12294659.2016.1161275

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