This paper empirically estimates gains from capital inflow to a regional ecomomy. It will be a usefulc for indicator for a local government to build a policy for attracting capital. We estimate the respective Cobb-Douglas production function for 11 provinces of Korea, derive its marginal productivity of capital, and then calculate the amount of capital moved between two provinces and gains from the capital movement. With no barriers to capital movement, there would be a strong motive for capital inflow to Seoul, Pusan, and Kyungki, whereas capital outflow would be expected in Chonnam, Chungbuk, Chungnam, and Kyungbuk. The ratio of gains from capital movement to the regional domestic from capital movement to the regional domestic product(RDP) is high in Cheju, Kangwon, Chungbuk, and so on. It turns out that capital flows from an area with lower productivity of capital to one with hihger productivity. This implies that if the local government of an underdeveloped region wants to lure capital investment from outside, it needs to provide it with strong incentives of eax reduction and special loans.

A regional economy is characterized as a spatial economy. However the literature shows that it has been treated as a point economy since space is little recognized in regional modeling due to mathematical complication. This leads to the fact that regional model does not sufficiently represent regional characteristic. This paper attempts to construct a regional growth model in a partial equilibrium framework specifically taking into consideration land as a primary factor. The model is formulated largely neoclassical. Labor is assumed to move in response to differences in the wage rate, while capital is perfectly mobile across regions. The paper shows that two growth equilibrium points exist, one stable equilibrium point and the other unstable equilibrium point. The unstable growth equilibrium indicates the existence of minimum threshold that a region must overcome the minimum threshold to grow constantly. Consequently, directions of regional growth are characterized by two growth paths depending on the initial condition of a region. That is to say, a region below the minimum threshold is converging toward the lower stable equilibrium point over time. When a regional economy initially lies above the minimum threshold, it will grow forever. A regional economy is not thus necessarily converging a stationary is not thus necessarily converging a stationary equilibrium point through factor movement. Finally, the impacts of the presence of agglomeration economies and diseconomies are analyzed through the phase diagram. The paper also shows that agglomeration economies result in lowering the minimum threshold and in escalating the level of stable equilibrium However, when agglomeration diseconomies prevail, the results are opposite, i.e., rising the minimum threshold of growth and lowering the growth level of stable equilibrium.

This paper investigates the spatial characteristics of networks, which arise as a firm's strategy to enhance its competitiveness to cope with the changing economic environments characterized by technological changes and increasing competitiveness. The theoretical framework in this study proposes that networks emerge as a firm's strategies to promote its competitiveness through the vertical/horizontal disintegration of the production system. Futhermore, regional industries of networks. The study examines the types of cooperation and the spatial boundary of the computer industry networks in Korea. Questionnaire survey was conducted on 1, 128 computer companies which had more than 10 employees, with 126 questionnaires being used for analysis. In addition, newpaper articles were used to supplement the foregoing work on network characteristics. The review of these articles covers the period from Jan. 1994 to June 1996. Major findings of this study are as follows: The spatial range of cooperative networks varies according to the specific characters of cooperation(R & D, production, and seles). Intralocal networks are being developed in Kangnam and Youido area, the computer industry agglomeration clusres of Seoul. There are the regional differnces in the agents and contents of cooperation. In intra-national R & D and production networks, regional differnces in agglomeratins and non-agglomerations are not detercted. Most networks of this type are found between large firms and small firms. In contrast, foregn R & D and production networks, which are operated mostly by large firms, are found in Kangnam, Youido, and CBD. Intra-national and foreign productino networks are also focused in Kangnam, Youido, and CBD. Small firms are playing an active role in making this type of cooperation possible. In the perspective of localization-globalization, Korean computer industry can be analyzed in two respects: industrial and regional. The localization of small firms and the localization-globalization of large firms' networks are being developed in industrial contexts, while the localization-globalization of agglomerations and the localization of non-agglomerations networks are being developed in regional contexts. As networks for the localization-globalization of industry are growing in agglomerations, interfirm networks could be related to trends in the formation or intensification of industrial agglomerations. industrial agglomeration areas function as a facilitator of localization through subcontracts, intraregional network and interregional network. They also facilitate globalization via foregn networks. In non-agglomeratin areas, localization networks, which are connected with agglomeration areas via subcontracting, interregional R & D. or production cooperation.

This paper is concerned with an estimation of optimal investment of road sector in 1996-2005. The main method is a Computable General Equilibrium (CGE) Model for Korea in which the optimal solution is derived in a recursively dynamic path. The model is composed of three main modules: the supply, the demand and the price. In this paper, the investment demand for the road is optimized with subject to national economic growth and price inflation. If the annual inflation level and the economic growth rate during 1996-2005 are set to 4.5%-5.0% and 6.0%-6.5% respectively, the optimal demand for the road investment is estimated as 155.1-180.1 trillion Won or 3.33%-3.89% of the GDP for ten years. It implies that the additional increase of the road investment by 0.61%-1.15% of the GDP is required for sustainable economic development, since the share of the road investment in the GDP of the latest 5 years has stayed around 2.27%. However, it is necessary to reduce construction investments on housing as well as to promote private financing of the road in order to maximize an efficiency of resource allocation.

Main findings of this study are as follows. Time-space model of Korea for urban growth model is established. The variables of space model resulted in job and education, which both are significant at 0.01 level and positive. The effect of job and education on the urban growth are 0.76 and 0.29 respectively in average. the determinants for deciding the influences for job variable are income variable and price-level variable. Income variable contributes 68.66% and the direction is negative while contribution of price-level variable is 29.90% and the direction is positive. The determinants for education variable are income, unemployment and wage difference between university graduates and high school graduates. The contribution and the high school graduates. The contribution and the direction of each variable for education variable are 63.6% and positive for the unemployment variable, 15.99% and negative for the income variable and 13.75% and positive for the wage difference variable. This study in different from previous works in three ways. The first is to establish the time-space model which could consider the time and space factor simultaneously. The second is to build data bases which contain the data of almost every city and every year in Korea during the objective period, which make the analysis continuous. The third is that the general analytic framework for the study is macrosocial one rather than a behavioral one, which means the unit of analysis is the metropolitan community and each city occupies population actively through it's potential power such as jobs, education and so on rather than a city population is the passive result of migration.

This study aims to identify the role of science park for technology commercialization and business promotion. After theoretical review about science park and technology commercialization, the instruments for stimulating entrepreneurship and business in science park are described. The experience of Taedok Science Town is examined in terms of main sectors of activities, universities as base for technology transfer and the potential for technology commercialization. In conclusion, the complex model is suggested as the development strategy for business incubation in accordance with the stages of development and active technology commercialization.

This study aims at drawing implications for Korea's urban growth management policies from U.S.A's experience on this issue. This study analyzes two types of contradictions in planning and implementing urban growth management policies: 1) value conflicts in goal setting and 2) contradictions among different level of governments (local, province, nation). As mentioned by Campbell (1996), there are three types of conflicts in objective values (efficiency, equity, and environment protection): property contradiction between economic growth and equity, resource conflict between efficiency and environment protection, and development conflict between equity and environment protection in urban growth management policies. In implementing urban growth management three types of conflicts in goal values should been taken into consideration. Contradictions among local governments, province, and central government are also found in implementing growth management policies. The lessons from the United State are as follow: 1) growth management plans are initiated by the local government and during the planning process adjacent local governments review a local government's growth management plans and give inputs for the plan, 2) local government and State work together for growth management planning and specially, the State provides technical and financial assistance to local government, and 3) the State plays leading roles in local government's planning and implementing of growth management policies with carrot and stick policy.