• Journal of the Economic Geographical Society of Korea
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• v.8 no.2
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• pp.267-284
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• 2005

This study analyzes the effects of localities' competitiveness which can contribute to employment growth in industries, on economic development in the local jurisdictions. For this analysis, such competitiveness is measured by competitive shares calculated from the application of a shift-share method to the employment growth in industries each locality witnessed over the 1990s. And we use annual population growth rate and average annual per capita income (substituted by per capita head tax derived from income tax) of the early 2000s as variables of local economic development. The analysis targets 167 local jurisdictions in Korea for the employment growth in industries, and is mainly placed in a spatial econometric setting. The results of analysis are as follows : The competitive share of manufacturing has the effect of increasing annual population growth rate whereas that of construction has a negative effect on the population growth rate. As well, the competitive shares of manufacturing and of construction negatively influence average annual per capita income while that of community, social and personal services positively affects the income.