Abstract

This paper examines the determinants of imbalanced regional development in Korea during the period of 1985-1995. The review of previous analytical techniques have been used to analyze the determinants of disparities in regional development of disparities in regional development, but few has applied the regression technique which reduces a bias due to heterogeneity across region. The results of the study show that Kmenta model with per capita GRDP as dependent variable can reduce the heterogeneity bias in regional development and can minimize the statical errors in estimation and interpretation of the coefficients of the explanatory variables. According to the results of Kmenta model, urban infrastructure such as roads, information and communication facilities are major causes of regional disparity over the period of 1985-1995. The results of the study also indicate that local government should devote their policy efforts to identify and utilize the unique soci-economic characteristics of each locality in the process of regional development.

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