Impact Analyses of City-County Consolidation on Urban Growth in South Korea

“The results show that city-county consolidation has a significantly positive impact on growth of population and urbanized areas. Also, consolidated cities, compared to those failing to be consolidated, show a stronger tendency to balanced growth between former central cities and former unincorporated areas.

The results may imply that city-county consolidation brings positive influences on urban growth in terms of population and urbanized areas and has a potential to promote balanced growth between central cities and suburban areas.”

Impacts of planning at the regional level have been controversial. Supporters argue that regional efforts enhance economic competitiveness of the region, while some studies find that regions under parochial planning systems generate better economic performance. This paper aims to identify the effects of city-county consolidation, an example of regional planning, on urban growth and its growth patterns in South Korea. A simultaneous equations model with 3 stage least squares is employed to identify the impacts on urban growth. Specifically, four growth indicators, including population growth, employment growth, urbanized area growth, and financial growth, are used as endogenous variables, and dummy variables of consolidation types along with other control variables are used as exogenous variables. In addition, interaction terms combining the dummy variables with the ratio of growth differences between cities and counties are also employed.

Published in Journal of Korea Planning Association | 황의정 | 2017