With an objective to provide policy implications to help establish effective regional development policies and the so-called ‘KTX (Korea Train Express) Economic Zone’plans, this study intends to analyze the impacts of the changes in industry location factors, including the opening of the KTX.
one of the recent largest infrastructure investment projects, on the spatial distribution of a high-tech industry which is closely related to discussions on the so called ‘KTX Economic Zone.’ To this end, this study divides stations into existing stations in hub cities and new stations in order to reflect
differences in land use patterns between the two different station types. This study selects the analysis period of a decade before and after the KTX was opened, and links the micro data of the mining & manufacturing industries and the explanatory variables such as average land prices in terms of time-series at the smaller spatial units of Eup, Myeon and Dong. Then, through applying a panel negative binomial model using fixed-effects, this study attempts to analyze the impacts of the changes of location factors including the opening of the high-speed railways on the location of new hi-tech manufacturing establishments. The main findings of the analysis are as follows.
First, it is found that the opening of the KTX tends to reduce the location preference of the high-tech industry near the existing stations located in hub cities. On the other hand, as for new stations, the opening of KTX itself does not appear to produce statistically meaningful changes on the location of the high-tech industry, whereas the improvement of overall road infrastructure appears to bring positive impacts on its location near the new stations. This implies that policies to reduce traffic congestions by improving the overall transport infrastructures nearby the KTX stations has a potential for a successful execution of the regional industrial location policy that aims to lead the development of regional economic zones by creating high-tech clusters near the KTX station.
However, given that the pattern of the land uses near the station varies among regions, the regional industrial location policy should be differentiated in accordance with the conditions of the land use near the stations.
Second, the increase in the average land prices turns out to have highly statistically meaningful effects on the location of the new high-tech establishments regardless of differences in the type of stations. Specifically speaking, it is found that an increase of 10,000 won in the land price per square meter is expected to decrease the number of new hi-tech companies by about 0.23~0.30%. This indicates that the supply price of industrial land would be critical for stimulating investment of hi-tech industries.
Third, an increase in the number of employees in the manufacturing industry located in the region, which is used as a proxy variable to control agglomeration benefits, turns out to be a very positive factor for the location decision of a new establishment. This result is overall consistent with the findings from preceding studies. Furthermore, this study finds that clustering by each technology sector is a significant factor for the location decision of a new establishment. This implies that even when the large-scale investment is made on the transport infrastructure and the land is supplied at lower prices, the effects of location policies would be limited without the consideration of industrial clustering effects, particularly of the same technology sectors.
투자촉진을 위한 지역산업입지정책(Regional industrial location policies to stimulate manufacturing investment)
|Series Title; No||정책연구시리즈 / 2010-20|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < Transport/Logistics|
|Holding||KDI; KDI School of Public Policy and Management|