This paper attempts to construct a dynamic multi-region CGE model taking into consideration the land as areal input factor. The model is applied to regional economies in Korea and specifically shows the regional economic growth paths and resource allo...
This paper attempts to construct a dynamic multi-region CGE model taking into consideration the land as areal input factor. The model is applied to regional economies in Korea and specifically shows the regional economic growth paths and resource allocation among regions and sectors over time. According to the model, the Korean economy would experience low economic growth, and gaps of economic strength between regions would be enlarged in case of no additional land provision. So, several scenarios about regional land provision policy are rendered. The results of policy simulations indicate that there is trade-off relation between the efficiency and the equity of land provision policy. This means that the policy of and provision to undeveloped regions will be effective in terms of diminishing the economic gaps between regions, while the policy of land provision to advanced region more effective in terms of national economic growth.