Basic Report

The Moon Jae-in government adopted inclusive growth to induce job creation through job improvement through economic growth and income distribution improvement by income-led growth such as job quality improvement and human capital development. In addition, as the problems of low fertility and aging, inequality, and polarization are getting worse, we have recently embraced national strategies that combine inclusive and innovative social policies with income-driven growth, innovation growth, and fair economy. On the other hand, in order to consider the regional economic changes in the era of low fertility and aging, it is necessary to consider the overall population growth, and to examine the effects of changes in productivity, human capital, age structure and silver generation (aged population) along with general population change. In addition, in order to grasp the changes in the utility of the people as a result of the state administration, it is necessary to consider the changes in prices, which are the main factors of consumption change, and the minimum wage, which is the source of consumption. Productivity, labor, capital, output, value-added, and utility.
   In addition to the population change for the city and province according to the characteristics of the region, this study was conducted to investigate the effects of population structure, productivity and human capital which offsets negative effects by population decline, and the dependency on the aging population. Therefore, this procedure shows the effect of population change is not simply a change in population but a change in the rate of convergence of capital, production, consumption, labor, and human capital respectively. In addition, considering the changes in prices that can affect the consumption behavior of households by considering the change of prices as a fundamental change factor that can change the consumption behavior of households, the degree of consumption change and consumption change. Finally, by considering industry minimum wage changes, empirical results presents the changes direct and indirect effects of wage change, consumption, and output. Therefore, this study proposes a threshold point for changes in population, price and minimum wage and constructs scenarios, increase or decrease according to changes in individual factors, and presents a corresponding extent of change according to individual factors, along with the criteria to judge the extent of change and direction of change.
   The regional economic variables are differentiated by regions and provinces by considering the factors that offset the negative impacts of population changes and the total amount of population being discussed. The method of consideration of additional factors that may be the basis of the policy and the results before and after the consideration are reflected by region. In addition, by showing changes in prices to reflect changes in prices to reflect the effects of rising prices along with income increases, the results are differentiated by region and industry by presenting changes in utility by city, province and industry. Also, the positive and negative aspects of income growth and wage growth are presented by presenting the degree of change in the minimum wage by scenario.
   This study suggests the effects of changes in population, prices and minimum wages on regional economies by presenting empirical analysis results based on economic growth model, CGE, and interregional econometric price input output model. This may provide objective information that can be used. In addition, the implications for the policy implication based on a more precise method are suggested as a policy alternative. I hope that this research will be used as a useful reference material for relevant policy practitioners and related academic fields. I would like to thank the researchers who have carried out this research.