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Impacts of the development of large cities on economic growth and income distribution in Korea: A multiregional CGE model *
Author(s) -
Kim Euijune,
Kim Kabsung
Publication year - 2003
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.2003.tb00005.x
Subject(s) - computable general equilibrium , income distribution , economics , distribution (mathematics) , economic geography , macroeconomics , inequality , mathematics , mathematical analysis
. A multiregional Computable General Equilibrium (CGE) model of Korea is used to assess urban development strategy in terms of national economic growth and income distribution. We find that the dispersion of total investment expenditure to six large cities would be the best policy if the emphasis of national development were to be placed on economic growth, together with a reduction in regional income disparity. Conversely, a heavy concentration of investment expenditure in Seoul and Pusan would lead to an amelioration of inequality in the distribution of personal income, but it would be difficult to implement due to hostility towards a primarily city‐oriented value system.