The Korea Local Administration Review

When conducting a feasibility study for a large-scale public investment project, the regional economic impacts are analyzed as a detailed criterion for policy analysis. The regional economic impacts are typically presented as production induced effects, value added induced effects, and employment induced effects using the Inter-Regional Input-Output model(IRIO). However, there are limited standards to analyze the size of each effects. Therefore, this study suggests an improved method for analyzing regional economic impact using empirical distributions. The empirical distributions is based on non-parametric statistics and can be derived from past feasibility studies. Depnding on the purpose of the analysis, it may be based on the type of project or the target region. This proposed method has been validated through expert interviews and found to have a limited improvement effect. The proposed method as a result of this study will improve the rationality of decision-making for new public investment projects.