The Korea Local Administration Review

This study analyzes the regional economic growth effects of deregulation for thecapital region on local governments in GyeongGi province. The panel regressionanalysis results indicate that deregulation on the capital region have positiveeffects on local economic growth. Looking at region of regulatory, I find out that itis increased the most significant a GRDP per person regulatory of the Naturepreservation region. And it is increased a GRDP per person in order of theOverconcentration control region, the Growth management region. In particular, itwas investments in manufacturing activity on the Growth management region andthe Nature preservation region. But, the Overconcentration control region showedno significant changes. Thus the capital region deregulation is expected to affectthe movement of manufacturing between regions. On the other hand, the economicinvestment of local governments did not affect the local economic growths. In thefuture, local governments will require aggressive efforts to expand investmentactivities in the region, as well as social infrastructure facilities.
□ Keywords: Regulation on the Capital Region, GRDP per Person, Panel regressionanalysis