In the meantime, the regional economic growth has been proceeded in the national perspective rather than the regional perspective in the microscopic and quantitative level and the regional development has been unfolded as a means of solving the region...
In the meantime, the regional economic growth has been proceeded in the national perspective rather than the regional perspective in the microscopic and quantitative level and the regional development has been unfolded as a means of solving the regional problem and making total amount growth such as income increase in the close relationship with economy.
Under this background, to identify the relationship between endogenous variables which affect the regional economic growth, targeting the whole country including 16 cities and provinces, the 5 metropolitan economic regions and Gangwon region from 1997 to 2008, this paper used 2-Stage Least Square (2SLS) and 3-Stage Least Square (3SLS) among the estimated method of simultaneous equations as analysis method. To analyze this paper, we used the main variables which are emphasized as the effect factors of growth in the theory of regional economic growth to set the simultaneous equation model of regional economic growth consisted of income growth model, employment growth model, banking growth model, financial growth model, SOC growth model, human capital growth model, and trade growth model and carried out empirical analysis which effects are generated by each factor. The analysis results are summarized as follows.
First, considering the factors which affect the regional economic growth, as a result of analysis using a 2SLS, for income growth model, the whole country was analyzed that the regional export variable is the most important factor, and in the metropolitan economic region, the cost of social development per 1,000 persons is the most important factor for Dongnam region and the rest regions are the same as the whole country. For employment growth model, the whole country was analyzed that a GDP of mining and manufacturing industry per capita is the most important effect factor and in the metropolitan economic regions, the regional import variable for the capital area and a GRP per capita for Dongnam region and the rest regions are the same as the whole country. For finance growth model, the whole country and the metropolitan economic regions were analyzed that the variable of population density is the most important effect factor. For banking growth model, the whole country and the metropolitan economic regions were analyzed that the variable of social development cost per 1,000 persons is the most important effect factor. For SOC growth model, the whole country was analyzed that the variable of construction permit area per capita is the most important effect factor and in the metropolitan economic regions, the variable of power consumption per capita is the most important factor for Dongnam region and the rest regions are the same as the whole country. For human capital growth model, the whole country was analyzed that the variable of regional/whole country researcher is the most important effect factor, and in the metropolitan economic regions, a GRP per capita is the most important effect factor for the capital area and Honam region and the tax per capita for Daegyeong region and the rest regions are the same as the whole country. For trade growth model, the whole country and the metropolitan regions were found that the variable of GRP per capita is leading.
On the contrary, as a result of analysis using a 3SLS, for income growth model, it was found that the regional export amount is the most important effect factor for the whole country and Daegyeong region, the rate of road pavement for the capital area, Chungchung region and Dongnam region, the deposit amount per capita for Honam region, and the social development cost per 1,000 persons for Gangwon region. For employment growth model, it was analyzed that a GDP of mining and manufacturing industry per capita is the most important effect factor for the whole country, capital area, Chungchung region, Gangwon region, a GRP per capital for Honam region, Daegyeong region and Dongnam region. For banking growth model, the whole country and the metropolitan economic regions were analyzed that the population density is the most important effect factor. For finance growth model, the whole country and the metropolitan economic regions were analyzed that the variable of social development cost per 1,000 persons is the most important effect factor. For SOC growth model, it was found that the most important effect factor is a power consumption per capita for Dongnam region, and the construction permit area per capita for the whole country and the metropolitan economic except for Dongnam region. For human capita growth model, it was analyzed that a GRP per capita is the most important effect factor for the capital area and the variable of regional/whole country researcher for the whole country and the metropolitan economic regions except for the capital area. For trade growth model, it was found that a GRP per capita is the most important effect factor for the whole country and the metropolitan economic regions and concluded that it contributed to the regional economic growth.
Second, considering the contribution degree per growth factor for regional economic growth, for income growth model, the whole country showed that the number of university per 10,000 persons is the most contributed factor, the regional export amount for the capital area, the social development cost per 1,000 persons for Dongnam region and the rest of metropolitan economic regions are the same as the whole country. For employment growth model, Dongnam region showed that a GRP per capita is the most contributed factor, and the regional import amount for the metropolitan economic region except for the whole country and Dongnam region. For banking growth model, it was found that a GRP per capita is the most contributed factor for the capital area and the population density for the metropolitan economic regions except the whole country and the capital area. For finance growth model, it was found that the social development cost per 1,000 persons is the most contributed factor for the whole country and the metropolitan economic regions. For SOC growth model, it showed that the core factor is the most contributed factor for the capital area and Chungchung region, the power consumption per capita for Dongnam region, and the construction permit area per capita for the whole country, Honam region, Daegyeong region and Gangwon region. For human capital growth model, it was found that the weight of regional/whole country researcher is the most contributed factor for the capital area, and a GRP per capita for the metropolitan economic regions except for the whole country and the capital area. For trade growth model, it was identified that the power consumption per capita is the most contributed effect factor for the capital area, the number of employees per 1,000 persons for Dongnam region and a GRP per capita for the whole country and the rest of metropolitan economic regions and concluded that they contributed to the regional economic growth.
After considering all the results of analysis as above, it showed that the factors that give the big effects relatively to the regional economic growth are the regional export, construction permit area per capita, social development cost per 1,000 persons, population density, a GRP per capita etc. Thus, in order to activate the regional economic growth, it is needed to consider the policy to promote the regional growth by the increase of a GRP per capita in priority and to increase this, the alternatives to enhance the foreign competitiveness through the export overseas should be established to improve the growth level of regional economy. In addition, it is required to proceed the export and financial policy in parallel so that we can get the creation of regional employment, creation of income source and increase effect and furthermore, economic stability and the effect of economic growth.