The Located in the center of the country, Chungcheongnam Province is emerging as one of the core regions which lead the growth of the country. In particular, Sejong City, which is under construction in Yeongi-gun and Gongju City, Chungcheongnam Province for the sake of balanced growth across the nation and enhancement of national competitiveness, is expected to play an important role for the economic development of Chungcheongnam Province.
Today a number of researches are conducted with national input-output tables as well as interregional input-output tables. However, most input-output analyses are about a particular industry's ripple effect at national level and ripple effect in neighborhood as a result of development and investment in new towns and relocation of a provincial government.
Although it is, of course, important to measure the ripple effect at a national level in conducting economic analysis, it is even more important to analyse the effect according to region when conducting a regional development project for the balanced regional development. Therefore this study proposes a method of identifying the impact of construction of the Sejong City on the real estate industry by using interregional input-output tables and estimates the impacts of construction of the Sejong City on other industries in major cities and provinces which are related to the real estate industry.
As a result, the construction of Sejong City would have the ripple effect of 278,917 million won on the real estate industry, employment inducement of 1,870 and job search inducement of 1,544. The study on impact of construction of the Sejong City on the real estate industry shows that as the final demand on building and construction industry in Chungcheongnam Province increases, it also causes indirect effect on Seoul and Gyeonggi Province as much as in Chungcheongnam Province.
This study has such limitations as the assumption that all costs for the construction of Sejong City would be invested 2005 and the lacking contents about the construction business among the cost burdens on operators.
Future study will hopefully deal with the interregional ripple effect of industries other than the real estate industry.