This study compares estimates on the three main items of national income estimates, i.e., “product,” “distribution,” and “spending,” and explores the distribution of and correlations between the national income and economic transactions. The goal is to provide estimates on production and income in downtown Seoul.
Resident income estimates confined to certain areas face many more constraints in terms of the availability of data than national income estimates do. There are simply not enough data on how the movement of goods among regions and nations affect a specific region, nor on the spending and investment patterns of households, governments, and businesses concerning that region. At present, it is nearly impossible to reliably estimate how much the residents of a specific area earn and spend.
Estimates on the income of residents of a region can be divided between product estimates and income estimates. The product estimates can be subdivided between industrial product estimates and distributed individual income estimates. The former accounts for the output of various industries and sectors, such as agriculture/fishery/forestry, mining, construction, energy and utilities, shipping/storage/communications, wholesale and retail distribution, finance/insurance/real estate, housing, public administration and defense, and other services. The latter involves individuals’ income, corporate income, public corporation income and income on government properties, and deductibles. The Ministry of Interior Affairs provides guidelines on individual income estimates.
This study reaches the following conclusions: As of 1973, the product estimates of Seoul totaled KRW 1.4551 trillion, or KRW 233,000 (USD 586) per capita. This represents 34 percent of the gross nationwide product estimates, suggesting that Seoul is about 1.2 times more productive than the rest of Korea. More specifically, the local manufacturing sector was responsible for an estimated total of KRW 418.6 billion, which is almost 10 times the estimate (KRW 42.4 billion) for agriculture/fishery/forestry. Manufacturing and related services account for over 99 percent of the total manufacturing estimate.
The distributed individual income estimate for Seoul totaled KRW 1.221 trillion, or KRW 196,000 (USD 492) per capita, as of 1973. Of this, KRW 1.0746 trillion or 88 percent of the total estimate comes from individuals’ income, while corporate income makes up approximately KRW 125 billion. Seoul accounts for 33 percent of the gross distributed individual income estimate nationwide, indicating that residents of Seoul earn about 1.1 times more than their counterparts elsewhere in Korea.
However, the absence of a consistent and uniform method applied to obtaining these estimates, and the shortages of statistical data, compromise the accuracy and reliability of these estimates. In order to obtain more reliable estimates on local economies for the purposes of analysis and planning, we need to establish a consistent method or system of methods for gathering requisite data and comparing different regions.
서울시내 생산 및 소득추계, 1973(Product and income estimates on downtown Seoul)
|Series Title; No||연구보고서 / 제75-03권|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics|