Reform of local administration system has recently emerged as a hot issue, and 4 categorical alternatives - including build-up of the 1-tier local autonomy, establishment of super-metropolitan government, consolidation of metropolitan city and provinc...
Reform of local administration system has recently emerged as a hot issue, and 4 categorical alternatives - including build-up of the 1-tier local autonomy, establishment of super-metropolitan government, consolidation of metropolitan city and province, and functional distribution between province and city/county are being proposed from various perspectives. This study aims to review the necessity of local administration system reform with regard to enhancing the competitiveness of regional economy and its revitalization. The current local administration system is to be reformed since it is inadequate, in terms of administrative area and functional distribution among central and local governments, not only to create scale and agglomeration economies as well as network economies, but also to solve duplicate investment and enhance regional economic capabilities. Those elements, attainable from metropolitan economic space are sure to become indispensable in ensuring the competitiveness of regional economy and its revitalization. It is concluded that both enlargement of administrative area through metropolitan city-province or city-county consolidation and distinct functional distribution among governments based upon “supplementarity principle”must become a prerequisite to promote the competitiveness of regional economy and its revitalization.