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Impacts of national development and decentralization policies on regional income disparity in Korea

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  • Euijune Kim
  • Euijune Kim
  • Sung Woong Hong
  • Soo Jung Ha

Abstract

This paper analyzed the effects of national development and decentralization policies on the regional income disparity in Korea. It also attempted to test whether there was a structural change in the causal relationship between income inequality and its determinant factors. This study found that the degree of variation in regional incomes was positively correlated with the spatial distribution of decentralization instruments such as educational services, employment, infrastructure facilities, and information network variables. The effects of some decentralization policies on regional income inequality were fully realized within a period of three years. Finally, the impacts of the spatial decentralization of public goods on regional inequality fluctuated until the early 1980s but were stabilized as industrial restructuring and spatial reorganization progressed during the 1990s. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Euijune Kim & Euijune Kim & Sung Woong Hong & Soo Jung Ha, 2003. "Impacts of national development and decentralization policies on regional income disparity in Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(1), pages 79-91, February.
    • Handle: RePEc:spr:anresc:v:37:y:2003:i:1:p:79-91
    DOI: 10.1007/s001680200111
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    References listed on IDEAS

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    Cited by:

    1. Christian Lessmann, 2012. "Regional Inequality and Decentralization: An Empirical Analysis," Environment and Planning A, , vol. 44(6), pages 1363-1388, June.
    2. Christian Lessmann, 2012. "Regional inequality and decentralization: an empirical analysis," Environment and Planning A, Pion Ltd, London, vol. 44(6), pages 1363-1388, June.
    3. Seungwoo Han, 2022. "Spatial stratification and socio-spatial inequalities: the case of Seoul and Busan in South Korea," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-14, December.
    4. Christian Leßmann, 2006. "Fiscal Decentralization and Regional Disparity: A Panel Data Approach for OECD Countries," ifo Working Paper Series 25, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    5. Akramov, Kamiljon T. & Asante, Felix Ankomah, 2008. "Decentralization and local public services in Ghana: Do geography and ethnic diversity matter?," GSSP working papers 16, International Food Policy Research Institute (IFPRI).
    6. repec:rre:publsh:v:33:y:2003:i:3:p:313-27 is not listed on IDEAS
    7. Nobuo Akai & Masayo Hosio, 2009. "Fiscal Decentralization, Commitment and Regional Inequality: Evidence from State-level Cross-sectional Data for the United States," Journal of Income Distribution, Ad libros publications inc., vol. 18(1), pages 113-129, March.
    8. Anping Chen & Nicolaas Groenewold, 2013. "The national and regional effects of fiscal decentralisation in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 731-760, December.
    9. Sangmin Kim, 2017. "From protest to collaboration: The evolution of the community movements amid sociopolitical transformation in South Korea," Urban Studies, Urban Studies Journal Limited, vol. 54(16), pages 3806-3825, December.
    10. Christian Lessmann, 2009. "Fiscal Decentralization and Regional Disparity: Evidence from Cross-Section and Panel Data," Environment and Planning A, , vol. 41(10), pages 2455-2473, October.
    11. Jaime Bonet, 2004. "Descentralización fiscal y disparidades en el ingreso regional: la experiencia colombiana," Documentos de Trabajo Sobre Economía Regional y Urbana 2282, Banco de la República, Economía Regional.
    12. Inyong SHIN & Eiji YAMAMURA & Hyunho KIM, 2012. "The Cubic Form Hypothesis And The Flying Geese Pattern Hypothesis Of Income Distribution: The Case Of Korea," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 7(3), pages 5-23, August.
    13. repec:rre:publsh:v:39:y:2009:i:1:p:85-98 is not listed on IDEAS
    14. Jaime Bonet, 2006. "Fiscal decentralization and regional income disparities: evidence from the Colombian experience," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(3), pages 661-676, August.
    15. Diana Barros & Aurora A. C. Teixeira, 2021. "Unlocking the black box: A comprehensive meta-analysis of the main determinants of within-region income inequality," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 41(1), pages 55-93, February.
    16. Nupur Nirola & Sohini Sahu & Atrayee Choudhury, 2022. "Fiscal decentralization, regional disparity, and the role of corruption," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 757-787, June.
    17. Euijune Kim & Yasir Niti Samudro, 2017. "The impact of intergovernmental transfer funds on interregional income disparity in Indonesia," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 21(1), pages 22-40, January.
    18. Muhammad Shahid & Khalil Ahmad & Ayesha Haider & Safdar Ali, 2024. "Decentralization and rural–urban income inequality: implications for inverted-U hypothesis of Pakistan," Evolutionary and Institutional Economics Review, Springer, vol. 21(2), pages 177-197, September.

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    More about this item

    Keywords

    JEL classification: O15; R12; R15;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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