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Impacts of national development and decentralization policies on regional income disparity in Korea

Author

Listed:
  • Euijune Kim
  • Euijune Kim
  • Sung Woong Hong
  • Soo Jung Ha

Abstract

This paper analyzed the effects of national development and decentralization policies on the regional income disparity in Korea. It also attempted to test whether there was a structural change in the causal relationship between income inequality and its determinant factors. This study found that the degree of variation in regional incomes was positively correlated with the spatial distribution of decentralization instruments such as educational services, employment, infrastructure facilities, and information network variables. The effects of some decentralization policies on regional income inequality were fully realized within a period of three years. Finally, the impacts of the spatial decentralization of public goods on regional inequality fluctuated until the early 1980s but were stabilized as industrial restructuring and spatial reorganization progressed during the 1990s. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Euijune Kim & Euijune Kim & Sung Woong Hong & Soo Jung Ha, 2003. "Impacts of national development and decentralization policies on regional income disparity in Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 79-91, February.
  • Handle: RePEc:spr:anresc:v:37:y:2003:i:1:p:79-91
    DOI: 10.1007/s001680200111
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    References listed on IDEAS

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    5. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    6. Zhang, Wei, 2001. "Rethinking Regional Disparity in China," Economic Change and Restructuring, Springer, vol. 34(1-2), pages 113-138.
    7. Somik V. Lall & Serdar Yilmaz, 2001. "Regional economic convergence: Do policy instruments make a difference?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 153-166.
    8. Euijune Kim & Kabsung Kim, 2002. "Impacts of regional development strategies on growth and equity of Korea: A multiregional CGE model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 165-180.
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    Citations

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    Cited by:

    1. Christian Leßmann, 2006. "Fiscal Decentralization and Regional Disparity: A Panel Data Approach for OECD Countries," ifo Working Paper Series 25, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Akramov, Kamiljon T. & Asante, Felix Ankomah, 2008. "Decentralization and local public services in Ghana: Do geography and ethnic diversity matter?," GSSP working papers 16, International Food Policy Research Institute (IFPRI).
    3. Christian Lessmann, 2009. "Fiscal Decentralization and Regional Disparity: Evidence from Cross-Section and Panel Data," Environment and Planning A, , vol. 41(10), pages 2455-2473, October.
    4. Jaime Bonet, 2004. "Descentralización fiscal y disparidades en el ingreso regional: la experiencia colombiana," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL Y URBANA 002282, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    5. Inyong SHIN & Eiji YAMAMURA & Hyunho KIM, 2012. "The Cubic Form Hypothesis And The Flying Geese Pattern Hypothesis Of Income Distribution: The Case Of Korea," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 7(3), pages 5-23, August.
    6. Kim, Euijune & Jeong, Youn Hee, 2003. "Decomposition of Regional Income Inequality in Korea," The Review of Regional Studies, Southern Regional Science Association, vol. 33(3), pages 313-327.
    7. Malul, Miki & Bar-El, Raphael, 2009. "Core-Periphery Market Failure in the Location of Economic Activity," The Review of Regional Studies, Southern Regional Science Association, vol. 39(1), pages 85-98.

    More about this item

    Keywords

    JEL classification: O15; R12; R15;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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