The analyses of inter-regional output to output multipliers show that the
regions that supply much intermediate inputs into the other regions, have
greater intra-regional output to output multipliers than those of regions that
receive much intermediate inputs from other regions. On the inter-regional
output linkages, Seoul and Kyungki-Do have great influences on the other
regions by providing intermediate inputs into them. A hypothesis tells that
metropolitan cities closely relate with the rear provinces by supplying services,
particularly producer services, and the provinces provide manufacturing goods
into the cities. The relation can narrowly hold due to the influences of Seoul
and Kyungki-Do on the other regions in Korea. The trade volumes between a
region and near regions are greater than those with remote regions. Thereby
the inter-regional output linkages between them are strengthened. It seems
that the relation holds due to the transaction cost among regions. In the
medium-term analysis, the cumulative causation of the regional growth paths
works in the regional inter-industry output linkages, which may be a factor to
deepen the growth differentials. For the balanced regional growth, public
sectors have exerted possible efforts to provide the materials and labor inputs
into the underdeveloped regions’ production sides.