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Economic Spillover Effects of Urban Networks in Non Capital Regions: A Spatial Econometric Approach

Kim Jisu 1,  Hur Yoogyeong 1,  KANG MIN GYU 2

1서울시립대학교 도시행정학과
2서울시립대학교

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ABSTRACT

This study empirically analyzes the economic effects of different inner city network types within non-capital regions using urban network theory. Using freight Origin-Destination data from the national transport database, two network types were constructed. The first represents an ‘internal non capital network(G1)’ while the second encompasses a ‘non capital to capital region network(G2)’. The Spatial Durbin Error Model(SDEM) quantified both direct and indirect effects of network centrality and core citie on labor productivity. Stiatistical validation revealed that network-based spatial weight matrices failed to achieve significance, while only geographical proximity demonstrated meaningful externalities. Analysis uncovered diffrences across network configurations. Within G1, connectivity produced negative direct effects on labor produrtivity, with economic benefits concentrated among south eastern core cities, creating agglomeration shadows. In G2, connectivity with the capital region enhanced productivity in certain non-capital areas, though negative spillover effects persisted around Chungcheong core cities. Both network types consistently exhibited core city-induced agglomeration shadows. Traditional production factors demonstrated resilience throughout the analysis. Firm revenue and human capital maintained positive direct and indirect effects, reinforcing their continued importance for regional development. These findings suggest that non-capital urban networks have not achieved functional maturity necessary for mutual complementarity, indicating that strengthening internal linkages alone proves insufficient for establishing balanced regional development frameworks.

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