earticle

영어

The purpose of this paper is to estimate economic effects of regional university- education policies on regional economies using an Interregional CGE Model of the Seoul Metropolitan Area (SMA) and the rest of Korea. The model examines how national and regional economic growth could rely on allocation of investments for high educational resources. The model can integrate a stylized neoclassical elasticity CGE model with linkages of education and job-experience factors with the labor productivity by region and age-cohort. This paper finds that an increase in investments on the universities by 1% of total educational expenditures leads to regional income growth of the SMA by 0.151%～0.161% with annual GDP growth rates by 0.068%～0.070%, but fails to reduce the regional income disparity between two regions. This paper also deals with a possible conflict between SMA and the rest of Korea caused by the government’s recent amendments on the SMA regulations. The conflict should be approached not through the positions but through the interests. Government as a third party should play the mediator to help the conflict involved parties to focus on their interests.