Formation of Employment Subcenters and Regional Industry Restructuring: Focusing Wholesale and Retail Sector in Incheon
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Purpose: This study examines the relationship between formation of employment subcenters and regional industrial structures in Incheon. Research design, data, and methodology: We used the five-year panel data from 2012 to 2016 in 146 basic municipal units of Incheon to analyze panel regression models. Gross employment density and employment to population ratio were used as indicators of employment subcenters formation. The entropy index and Hachman index were used for analyzing the diversity and heterogeneity of industrial structures. Result: The analyses of two panel regression models showed that for the formation of employment subcenters, both the Entropy and Hachman index were significantly negative in most models. But tertiary industry was shown to have a significant positive relationship in all models. In the wholesale and retail sector, it was found that the average number of employees in the employment subcenters is significantly higher than that in the non-employment subcenters. Conclusions: The specialization of the industrial structure rather than the diversification contributes to the formation of the employment subcenters in Incheon. In particular, it can be considered that the wholesale and retail sector plays a very important role in forming the employment subcenters in many areas of Incheon.
Abstract
Purpose: This study examines the relationship between formation of employment subcenters and regional industrial structures in Incheon. Research design, data, and methodology: We used the five-year panel data from 2012 to 2016 in 146 basic municipal units of Incheon to analyze panel regression models. Gross employment density and employment to population ratio were used as indicators of employment subcenters formation. The entropy index and Hachman index were used for analyzing the diversity and heterogeneity of industrial structures. Result: The analyses of two panel regression models showed that for the formation of employment subcenters, both the Entropy and Hachman index were significantly negative in most models. But tertiary industry was shown to have a significant positive relationship in all models. In the wholesale and retail sector, it was found that the average number of employees in the employment subcenters is significantly higher than that in the non-employment subcenters. Conclusions: The specialization of the industrial structure rather than the diversification contributes to the formation of the employment subcenters in Incheon. In particular, it can be considered that the wholesale and retail sector plays a very important role in forming the employment subcenters in many areas of Incheon.
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