The Policy Effect of the Urban Regeneration New Deal projects in Local Industrial Cities: Focusing on the Industrial Crisis Response Special Area

Abstract

This study analyzed the policy effect of the urban regeneration New Deal project on the industrial structure of local industrial cities. The Urban Regeneration New Deal Project is an urban regeneration policy that activates urban declining areas in terms of society, economy, and physics. Therefore, this study analyzes the impact of the urban regeneration New Deal project on the industrial diversity and industrial specialization of local industrial cities. To this end, the research subjects were composed of regions selected as special industrial response areas among local industrial cities, and the analysis unit was composed from 2015 to 2020. In addition, it was intended to increase research reliability through the propensity score matching, and difference-in-difference models were conducted to derive policy effects between regions where the project was put and regions where it was not. As a result of the analysis, it was confirmed that the urban regeneration New Deal project did not affect industrial diversification in local industrial cities and negatively affected industrial specialization in specific sectors. Based on the analysis results, this study suggests planning in connection with the industrial structure of the region and expanding the participation of the private sector as ways to improve urban regeneration policies.