Abstract
In order to improve the profitability and efficiency of the waterworks project, there has been discussion about the integration of local waterworks providers including Kwater. The core of the discussion of integration centered on the local waterworks project is to improve the efficiency of the waterworks project through the integration of the spatial market scope of regional waterworks and local waterworks providers. In this study, using the spatial regression model, based on the estimation results of the cost reduction effect of integrating the existing local waterworks project, the effect of integrating four regions was estimated: western Gyeongnam, western Chungcheong, southern Jeonbuk, and southern Jeonnam. A total of four models were selected and estimated, including the basic model and three additional models, and the integration effect was measured as the reduction rate and amount of cost reduction due to the integration of the selected local governments on the premise that the input of factors in 2019 was made. In both the basic model and the additional model, it was estimated that the cost reduction would occur due to the integration of the local governments to be analyzed.
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