The Korean Journal of Economic Studies
Inter-Regional Output to Output Multipliers and Inter-Regional Output Linkages: A Research on Region
Haemyoung JiYear 2011Vol. 59No. 1
Abstract
The analyses of inter-regional output to output multipliers show that theregions that supply much intermediate inputs into the other regions, havegreater intra-regional output to output multipliers than those of regions thatreceive much intermediate inputs from other regions. On the inter-regionaloutput linkages, Seoul and Kyungki-Do have great influences on the otherregions by providing intermediate inputs into them. A hypothesis tells thatmetropolitan cities closely relate with the rear provinces by supplying services,particularly producer services, and the provinces provide manufacturing goodsinto the cities. The relation can narrowly hold due to the influences of Seouland Kyungki-Do on the other regions in Korea. The trade volumes between aregion and near regions are greater than those with remote regions. Therebythe inter-regional output linkages between them are strengthened. It seemsthat the relation holds due to the transaction cost among regions. In themedium-term analysis, the cumulative causation of the regional growth pathsworks in the regional inter-industry output linkages, which may be a factor todeepen the growth differentials. For the balanced regional growth, publicsectors have exerted possible efforts to provide the materials and labor inputsinto the underdeveloped regions’ production sides.