The Korea Local Administration Review

This study analyzed the administrative cost savings effects, economies of scale effects, and regional economic development effects of Urban-Rural Districts Integration, executed in 1994-5 in order to provide  study lessons as a prerequisite for an efficient execution of the administrative district reorganization. An analysis of short-term and long-term policy effects was carried out separately. According to the results of this analysis, there is some effects of local economic development, but the effects of an administrative cost savings and economies of scale were not raised on the short-term base. On the other hand, the result of the analysis of long-term effects was that there is no significant difference between integrated urban-rural districts and non-integrated districts but the effects of economies of scale in integrated districts were significantly larger in comparison with those of the non-integrated districts. However, the effects of economies of scale were affected greater by other structural factors such as the local government income and the urbanization level rather than the integration of urban-rural districts. In other words, on the short-term base, the integration of physical localities does not sufficiently incur the expected policy effects. On the long-term base also, there is no multiplier effect of integration. Thus, the paper proposes to build up a road map that considers the long-term policy effects and a step-by-step autonomic integrating plan rather than standardized integrating form. And the plan should also take into account the predictable changes in economic, political and social situation of the local government in pursuing the Urban-Rural Districts Integration.