This paper attempts to forecast regional economic changes and to analyze government policies for interregional balanced economic growth in case of Korea Reunification. It begins with a premise that South and North Korea will be reunified at the year 2...
This paper attempts to forecast regional economic changes and to analyze government policies for interregional balanced economic growth in case of Korea Reunification. It begins with a premise that South and North Korea will be reunified at the year 2010. The model is largely neoclassical. Since the future of North Korea is unclear, two possible scenarios are presented. The paper projects economic growth of regions, specifically forecasting GRDP, the number of migrants and the quantity of moving capital. The results obtained show that spatially unbalanced economic growth will take place in the reunified Korea through factor movement. Two policies including public capital provision policy and income subsidy policy are thus suggested and analyzed.