The relation between spatial distribution of industries and regional growth
inequality is studied by Gini decomposition method and LQ analysis. The
regional growth differentials in Korea have widened from 1990 to 2009 with
respect to per capita GRDP. Manufacturing industries, such as basic materials
and fabrication, and electronics․gas․water․construction are major industries
that contribute to deepen regional growth differentials evaluated by Gini indices.
Producer and consumer services mitigate the inequality compared with
manufacturing industries by lowering the Gini indices through even distributions
across regions. The stable LQ variances of all industries except for basic
materials industry have been maintained since 1990. However, the differences
among industries are substantial. Agriculture, forest, fishery and mining
industry which basically locates in the production base lower the regional
inequality by accumulating at the middle-income regions. Basic materials and
fabrication manufacturing industries locate in the high-income regions, thereby
raising the inequality more than the other industries. Producer services
basically have distributed over the major metropolitan-cities which largely rank
in the lower-income regions. Consumer services generally grow in all regions
based on the local markets and relatively lower the inequality. The basicmaterials
and fabrication manufacturing would be major industries to intensify
the regional growth differentials. The facts that the industries grow in the
same regions and the growth of fabrication manufacturing is not confined in
terms of spatial agglomeration are one of major concerns, because they may
strengthen the regional inequality. Services have been major industries to
lower the inequality. In this sense, policy measures should focus on developing
these industries for the balanced regional growth.