An Analysis of Economic Effects on Relocation of Public Institution into Innovation City of Jeju

The purpose of this study is to empirically present the gap change and economic effects of public institution relocation due to the relocation of eight public institutions to innovation city of Jeju Special Self-Governing Province(Jeju) from 2012 to 2018. The gap change due to the relocation of public institutions was analyzed for the both administrative cities of Jeju, and the economic changes were analyzed by dividing them into intra-regional and inter-regional effects. The results of the empirical analysis showed that the relocation of eight public institutions to Jeju increased GRDP after the relocation of individual and total public institutions. In particular, IO table was constructed for Seogwipo and Jeju City, and the economic effects were derived from the effects of changes in consumption by consumer goods that reflected the changes in employment and trainees due to the relocation of public institutions. This increased regional production and income and induced the growth of related industries. In addition, it was analyzed that the relocation of public institutions caused inter and intra regional employment effects. Therefore, the relocation of public institutions into Jeju induced growth changes in the relocated area, also the growth effect spread to the surrounding areas.