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Abstract
With the conclusion of the 2002 Land Partnership Plan (LPP), the relocation and dissolution of the 2nd U.S. Infantry Division located in Dongducheon and Uijeongbu were confirmed. The massive return of U.S. military bases came in 2007 amid concerns over the hollowing-out and expectations for new growth engines. As the two inflection points have brought great changes to two cities, it is necessary to closely examine the impact of the two events. The DID, often used in studies to measure the impact or effectiveness of policies was used. The total population, total number of employees, retail employees, and manufacturing employees were used as dependent variables, and the dummy variables required for the DID method were used as independent variables. To control the economic conditions within the time horizon, the composite economic indicators and local tax data for each city were used. Through the analysis, each local government failed to resolve the phenomenon of population hollowing out, but confirmed the growth of manufacturing industries. Therefore, there is a need to develop policies that promote the development of donor zones based on manufacturing industries and minimize population hollowing out through links with surrounding areas.
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