Abstract

The purpose of this study is to empirically analyze whether the degree of regional extinction intensifies dependency on the social economy. To achieve the purpose of the study, local municipalities in South Korea are utilized as the units of analysis. The dependent variables are proxy indicators measuring dependency on the social economy, while the main independent variable is the regional extinction index. Furthermore, to measure dependency on the social economy, this study utilizes the location quotient, which compares the proportion of the number of corporations, sales, and jobs created by the social economy within the municipality to national levels. Empirical results using gamma regression models indicate that in models where the number of corporations LQ and total sales LQ are set as dependent variables, an increase in extinction risk is associated with increased dependency on the social economy. However, no significant effects is observed in the model where job LQ is the dependent variable.

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