Major city-based economic bloc could be answer for regional development: BOK report
SEOUL, June 19 (Yonhap) -- A major city-based economic bloc backed by the concentration of population, social resources and infrastructure could be an answer for balanced regional development, a central bank report showed Wednesday.
According to the report from the Bank of Korea (BOK), massive infrastructure investment and facilities in some major cities can transform them into regional economic blocs, which in turn can narrow gaps in productivity with the capital Seoul and the wider capital area.
"Regional productivity is affected by the degree of concentration on infrastructure, business activities and production-supporting facilities," the BOK report said.
"Spatial concentration will facilitate resource sharing, improve the cycle of labor market, production and consumption, and, in turn, raise regional productivity," the central bank said.
The central bank report said in the era of an increasing population, the construction of infrastructure across the country was an important task.
"But in times of a declining population, we need to change our paradigm into major city-based balanced development," the report said.
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