Chapter 5 - A generic understanding of the economic changes of major port regions with shift-share analysis applied, South Korea

Abstract

Port research has been highly interested in identifying the factors of port development and classifying the common patterns among ports. As a result, port research has a consensus that the global logistics systems have been restructured with ports at the center and, hence, the role of the port is becoming more important in the regional economy. However, port studies about economic impacts are mainly focused on estimating the whole effects by applying cross-sectional methodologies at a specific time period. In this context, this study implements an empirical analysis by applying shift-share analysis and correlation analysis. At the level of a sector in a regional economy, the gross value added (GVA) per transportation worker is examined from 1990 to 2015. As a result, this study suggests the significant implication that the intensification of functional integration and port regionalization is likely to enlarge the disparity between port cities in light of the impacts of the ports on its regional economies. This implication can be supported by the result that four port regions in South Korea have greater levels of gross value added per worker in transportation and higher proportions of transportation in the regional economy compared to regions without large ports.