The Korea Local Administration Review

This study examines the effect of the consolidation between two localgovernments: Cheongju City and Cheongwon County. A two-stage approach wasemployed. In the first stage, a cost-benefit analysis shows that while itsbenefit after the consolidation is 88.4 billion Won for the next 10 years, itscost is 14.9 billion Won. Therefore, a net benefit is 73.5 billion Won thanks tothe consolidation. In the second stage, the results of a regional input-outputanalysis using the net benefits demonstrate that the consolidation would inducethe production of approximately 19.4 billion Won and the value-added ofapproximately 0.8 billion Won. Overall, the consolidation would be beneficial toboth localities in a significant sum. Therefore, this study suggests that the ideaof the consolidation of the two local governments be strongly pursued.
□ Keywords: Local Governments’ Consolidation, City-County Consolidation,Cheongju and Cheongwon