earticle

영어

This paper analyzes the effects of industrial agglomeration and compares the effects of those focusing on Capital region and Dongnam-Gwon. The growth rage of GRDP of Dongnam-Gwon have slowed and dropped under the national average after 2000's, because most of industries, especially in the area of information and communication, concentrated in Capital region. The economy of Dongnam-Gwon looks sound superficially but it encounters a deadlock. It needs a middle or long term momentum for its steady-growing economy. To establish policies for enhancing the competitiveness of Dongnam-Gwon, we need to understand what factors affect and how much they contribute to the regional economy. Hence, this study empirically analyzes the effects of industrial agglomeration using the firm level data. Empirical results are summarized as follows. First, the impacts of specialization that is one of the localization economies are statistically significant to the economy of Dongnam-Gwon. Second, the urbanization economies caused by diversities of different industries in one region and the market linkage effects are not observed in the economy of Dongnam-Gwon. Third, however, the economy of Capital region has positive externality effects in the localization economies, the urbanization economies, and the market linkage effects. Fourth, the non-linear regression results show that the marginal impact of specialization in Dongnam-Gwon has decreased with times. Hence, the positive effects can be obtained from further specialization in Dongnam-Gwon is restrictive. Fifth, the economy of Dongnam-Gwon has to be restructured so that the urbanization economies from diversities and the market linkage effects may have positive external impacts on the regional economy. Lastly, the coordination between specializations and diversities is necessary to obtain steady growth in Dongnam-Gwon.