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A Study on the Effectiveness of Region-Initiated Balanced Development Policy : The Case of Gyeongsangnam-do

Choe, Byeong-Ho 1 Keunjae Lee 1 정재희 2

1부산대학교
2경남발전연구원

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ABSTRACT

This paper empirically investigates the effectiveness of regionally-initiated balanced development policy for the case of Gyeongsangnam-do. In addition to the inherent problem of the spatial inefficiency of resource allocation resulting from inducing more resources to the jurisdictions with lower marginal product, we suspect that the regionally-initiated balanced development policy may has additional problem resulting from the out-migration of labor because of the openness of jurisdictional boundary. We cannot find the evidence of a higher stimulating effect of local expenditure on the regional income in the under-developed jurisdictions. It implies that the allocation of more fiscal resources to the under-developed jurisdictions has not been the effective tool for the balanced development between jurisdictions. We also find that there would be out-migration of population to other regions as the result of jurisdictions’ income equalization. These results show that the policy effect of regionally-initiated balanced development policy is more restrictive than the national policy and may negatively affect the competitiveness of the whole region.

Citation status

* References for papers published after 2023 are currently being built.