Earticle

It is widely known that dynamic game techniques are useful to analyze the principles of decision making in situations involving two or more players with conflicting interests. The paper reviews dynamic game techniques to examine whether the methods could be applicable to regional policy coordination. For this purpose, dynamic game techniques are applied to a symmetric two-region model that describes the relationship between the benefits and the costs of economic growth for both of the regions. In a cooperative game, each region forms a common goal, which is the minimization of the weighted sum of all the regions' welfare costs. In a non-cooperative game, each region independently pursues the minimization of its own welfare cost instead of aiming to achieve a common goal. The policy coordination rules are obtained as feedback solutions to calculate the welfare cost of each region. Depending upon the structure and the specific parameter values of the underlying model in a dynamic game, the total welfare gain could be distributed differently to each region. In a dynamic game framework, it is difficult to gain much insight into the theoretical implication of how the total gains would be distributed to each region. Numerical procedures are therefore employed to evaluate the rules and their welfare differences. In our experiment, the structure and the estimated parameter values of the underlying model lead to the distribution of the total welfare gain in such a way that the Nash equilibrium imposes a better welfare implication to the Region 1 than the cooperative equilibrium does. In this case, it is advised that the government should intervene the policy coordination process based on a carefully designed compensation mechanism.

This paper analyses the industrial structure and methods for high level industry in Umsong region. The framework for the analysis is a structure of Umsong's population and industry and methods for industrial development. We find that Umsong's population are growing with industrialization after 1990, Umsong's industry is gradually going into heavy and chemical industry and now Umsong's industry is composed mainly of "Manufacture of Basic Metals", "Manufacture of Motor Vehicles&Trailers and Semitrailers", "Manufacture of Other Transport Equipment", "Manufacture of Chemicals and Chemical Products", and "Manufacture of Other Machinery and Equipment". We finally show that it needs systematical assistances for industrial development and Umsong has to increase his capacity to make the high level industry.

This paper discusses two specific issues to draw policy implications regarding location strategy to build a business and logistics hub in Korea: location determinants of plants and logistics centers of global firms, and analysis of competitiveness of sub-nation entities. This paper suggests that Korea should carry out comprehensive, fundamental reforms as follows: First, in prioritising development, it is most desirable to first concentrate on developing the Capital Region and Kwangyang and Pusan ports to full capacity, and then to develop international logistics function in other parts of the country. Consequently, current policy regulations on the Capital Region should be re-evaluated in order to enhance the competitiveness of Korea's industries and to be more effective at inducing foreign investment. Second, Korea should make systematic and continuous efforts to have well-developed logistics infrastructure such as ports, airports, information and communication facilities, and distribution facilities. Free trade zones must also be actively developed to offer comprehensive logistics and production capabilities. Third, Korea urgently needs to improve the quality of logistics service providers, and to develop a solid workforce of logistics professionals. Finally, Korea needs a detailed national strategy and action plan on a clear vision with relevant government bodies working closely for coordination.

The purpose of this study is to estimate economic impacts of Osong International Bio Expo 2002 adopting Regional Interindustry Analysis or Regional Input-Output Analysis. The Bio Expo has played a great role as 'a home of national education', attracting great attention from all areas of society and attracting more than 800,000 visitors. The results of the study show a wide range of direct and indirect effects of the Bio Expo.

This report aims to study the economic effects of the 2002-World Cup on regional economy in Incheon, and to show the strategies to strengthen the compatibility of the City of Incheon through the maximization of the abstract & concrete economic effects. Firstly, The strategies from the soft/ware aspects as following are important, such as ① the strategies for the business environment for the spring-up as the Hub-city of the East-Asia Business, the city-marketing strategies to enhance the city-brand and city-image, and ② the magnification of the international relations & trade through the application of the enhanced state & city-image. Secondly, the propulsion of the proposed strategies by stage is also important. Respecting the preferred ranks and the possibility for the securing the required budget, the proposed strategies should be accomplished. Thirdly, it is also required to set the concrete propulsing-subject to accomlish the showed strategies. Under the medium․long-term financial planning the practical depart of the City of Incheon should establish the entire action-plan.

It has been said that local governments in Korea have not successfully implemented a capital budget, Which is related to providing local public goods such as roads, facility c onstruction and ect. Currently, there are several institutional measures to implement thos e capital budgets more efficiently through well-planned investment strategies. This report attempts to suggest several policy alternatives to improve the current inve stment appraisal system. This paper answers to improve the current investment apprais al system ; ①an arrangement of the size of candidate projects for an appraisal, ②a mor e flexible schedule for the regular appraisal process led by upper level governments, ③ setting up committee for the investment appraisal, ④establishing the back system for en hancing the utilization of the investment appraisal system, ⑤utilization of other program s such as financial assistance and long term budget, ⑥improvements in preliminary feas ibility studies.