This study attempts to analyze the economic bases of Korean cities applying the minimum requirements method and to find the changes in their economic bases. The minimum requirements method has been credited to be superior to any other indirect method ...
This study attempts to analyze the economic bases of Korean cities applying the minimum requirements method and to find the changes in their economic bases. The minimum requirements method has been credited to be superior to any other indirect method in estimating the economic base multipliers. The data set for this study is composed of population data and employment data by industry for 79 cities as of 2000 and 82 cities as of 2010. These data are analyzed to estimate regression equations of sectoral minimum employments according to the population size of each city. From this study, the sectoral nonbasic employment percentages are found to be larger as their urban sizes grow. Also the regression equation for aggregate industry obtained from this study is statistically significant. As seen in the changes of the minimum requirements by industry between 2000 and 2010, the service economization of urban industry led to the increase of the nonbasic employment levels, whereas the trends of the sectoral changes are various. The regression equations can be utilized to estimate the economic base multiplier of a city under an economic impact situation quickly and approximately.