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The Impact of Service Sector on Regional Economic Growth

  • Journal of Regional Studies and Development
  • Abbr : JRSD
  • 2012, 21(1), pp.1-29
  • Publisher : Institute for Poverty Alleviation and International Development: IPAID
  • Research Area : Social Science > Area Studies > Regional Studies in general > Comparative / Statistical Regional Studies

Kim, Youngduk 1 Han, Hyun Ok 1

1부산대학교

Accredited

ABSTRACT

This study shows how service sector changes affect regional economic growth using a regional panel model. Data include 16 regions from 1985 to 2009. Regional growth models are estimated, based on growth regression. The results are summarized as follows. First, service sector and knowledge-based service sector both have negative effects on regional economic growth. Second, the negative effects of service sector on regional growth are weaker in big cities than in provinces and the adverse effects of knowledge-based service sector are weaker in Seoul than the other regions. Finally, it seems that after the IMF crisis, the adverse effects of service and knowledge-based service sector have been reduced.

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