| Measures to Promote Rural Industries Based on Low-density Economies | |||
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| Author | Chung, Dochai | ||
| Views | 73185 | Publication Date | 2020.03.04 |
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Research Background According to discussion of the low-density economy in OECD industrial growth in remote area including rural region have played a central role in its member nations’ recovery from the financial crisis in the mid-2000s. Case studies about economic growth in low-density economy region show that rural or remote areas with weak industrial bases could contribute to national industrial development due to the emergence of new industries and growth potential. The OECD insists that rural industrial policies should be shifted from the current focus on primary industries to promoting various region based industries with competitive advantage. The organization suggests four strategies to overcome unfavorable industrial conditions in low-density areas: securing tradable activities, building urban-rural partnerships, linkages related policies, and establishing multi-layer governance. Based on OECD’s the low-density economy this study examines the emergence of rural industries and their growth, and cases about growth in low-density areas in Korea. Also, the authors suggest rural industrial policy directions and measures to overcome unfavorable industrial conditions and to pursue sustainable growth under the nation’s strategy to promote rural industries. The authors summarize the essential contents of low-density economy and identify implications for Korean rural industrial policy. We diagnose the growth trend of various industries in rural area. Under the view of low-density economy we identified characteristics of industrial growth process by case studies. We carry out an analysis of outcomes and limitations of previous policies for rural industry. We investigate characteristics and policy demand of firms which are located and produce in low-density area. Then, the authors draw out policy directions and tasks for the industrial growth in low-density area. Research Methodology The authors implement previous research review, analysis with statistical data, survey, and in-depth interviews. Also, we use two reports by outside experts. First of all, we review previous literature about direction of new rural industrial policy, significance of low-density economy, and rural and regional industrial policies related to low-density economy. Previous researches are about the concept and characteristics of OECD low-density economy, and Rural Policy 3.0. The raw data in National Statistical Office’s census of corporations from 2007 to 2016 are used to estimate change rate of the number of firms and employees by subcategories of industry and district units(Eup, Myeon, and Dong). We employ spatial analysis method to find growing regions according to low-density economy by major industrial sectors with the same data set. A survey is conducted on 218 companies located in key case areas to identify spatial characteristics on location decision, functional connectivity, and cooperation networks concerning low density economic growth. The types of low-density economies are categorized into the areas linked to cities (Chuncheon and Hongcheon, near Gangneung-si, and northern Gyeongsangbuk-do) and remote rural areas (eastern Jeollabuk-do and inland areas of Gangwon-do). We conduct social networking analysis to examine locality of the network and spatial characteristic on urban-rural partnerships by using network between firms in survey. In order to understand the growth paths and characteristics of major cases concerning low-density economy, in-depth interview is conducted on experts in each case. Furthermore, interviews of experts on regional industry policy are carried out to investigate demand on rural industrial policy. Findings The characteristics of low-density economy in Korea are as follows. the low-density economy in Korea shows a similar growth path as cases in the OECD. Compared with the urban area, total production in low-density economy area have increased more. Low-density economic growth is occurring in various areas. Previously, there are conventional rural industries, such as agriculture and food manufacturing in rural area. However, agglomeration of industrial sectors requiring high technologies appears in rural area. This implies that Korea’s rural regions have the potential to be an engine for national prosperity. (The rest is omitted. See the attached file for details.) Researchers: Chung Dochai, Jeong Yuri, Kim Jeongseung, Kim Yuna Research period: 2019. 1. ~ 2019. 10. E-mail address: dcchung@krei.re.kr |
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