Determinants of Offshore Regional Income Outflow and Policy Implications in Korea
|저자||Cho Sung-Min||발행일||제 호 (2019.04.30)|
Regional development that includes income distribution and qualitative growth is one of the major issues in regional economics.
Furthermore, Korean regional governments set regional development as a main goal and strive to improve it. However, regional income-Product(Gross Regional Domestic Product, GRDP) in non-capital area has been flowing out into capital area. Consequently, income-distributed (Gross Regional National Income, GRNI) towards non-capital area residents is lower than income-produced by them.
This raises concerns about diminishing residents’ sentiment toward regional development.
Inter-regional income flow is a natural phenomenon in an open economy where physical constraints are relatively low. Yet it is problematic that the amount of income outflow from certain non-capital regions is gradually increasing.