Basic Report

The purposes of this study are to estimate two types of regional productivity changes and to analyze the effects of regional infrastructure in regional economy. Two types of regional productivity are one with ignoring accidents (M productivity) and the other with considering of accidents (ML productivity). Also, the purpose of this study is to seek policy directions for supply of regional infrastructure to promote quality of life of the people and to grow productivity of regional infrastructure.In order to estimate productivity, Data Envelopment Analysis (DEA) and Directional Distance Function (DDF) designed to treat good output, GRDP(Gross Regional Domestic Product) and bad output, accidents costs. Also, this paper investigate the effects of regional infrastructure in productivity growth using Tobit regression model. Firstly, The results from 13 regions except Seoul City and Kyeonggi Province over period of 2006 to 2013 show that on the average, the efficiency of the 13 regions is 13.0% with considering accidents costs. Also, productivity increased regardless of accidents costs over time and the ML productivity is a little higher than M productivity, which means that most regions experienced more of a reduction ratio of accident costs than a reduction ratio of inputs.Secondly, when regional infrastructure increases, regional inefficiencies are tend to be reduced regardless of whether or not accident costs considered and influences of local management roads are found to vary from region to region. In addition, the local management roads rather than centralized management roads appear to affect more significantly to the regional economy.