A Study of Regional Industry Structure and Regional Economy Growth: Implications for National Balanced Development Policy Strategies

Abstract

This study analyzes the regional industrial structural characteristics and economic development at the local level in Korea. The local economy can grow by increasing the input of production factors (e.g., capital, labor, and productivity). Productivity can occur through knowledge diffusion and technological innovation, which are closely related to local industries. The development of industries in the region has continued following the central government's industrial policy, and regional economic growth has been pursued through priority fostering strategic initiatives in the region. In this regard, previous studies have been analyzed, focusing on the specificity and diversity of local industrial structures. This study aims to policy implications by examining how diversity or differentiation of industries in the region has a relationship with economic growth and estimating the degree of specialization of industries. The study results show a higher economic growth rate as local industries vary, suggesting similar results to previous studies. This shows a similar pattern in both industries and manufacturing industries. The results can positively contribute to making implications for the policy strategy of regional industry policies.