• KDI Journal of Economic Policy
• /
• v.12 no.3
• /
• pp.27-45
• /
• 1990

Two opposing views prevail regarding the economic impact of rural out-migration on the rural areas of origin. The optimistic neoclassical view argues that rapid rural out-migration is not detrimental to the income and welfare of the rural areas of origin, whereas Lipton (1980) argues the opposite. We developed our own alternative model for rural to urban migration, appropriate for rapidly developing economies such as Korea's. This model, which adopts international trade theories of nontraded goods and Dutch Disease to rural to urban migration issues, argues that rural to urban migration is caused mainly by two factors: first, the unprofitability of farming, and second, the decrease in demand for rural nontraded goods and the increase in demand for urban nontraded goods. The unprofitability of farming is caused by the increase in rural wages, which is induced by increasing urban wages in booming urban manufacturing sectors, and by the fact that the cost increases in farming cannot be shifted to consumers, because farm prices are fixed worldwide and because the income demand elasticity for farm products is very low. The demand for nontraded goods decreases in rural and increases in urban areas because population density and income in urban areas increase sharply, while those in rural areas decrease sharply, due to rapid rural to urban migration. Given that the market structure for nontraded goods-namely, service sectors including educational and health facilities-is mostly in monopolistically competitive, and that the demand for nontraded goods comes only from local sources, the urban service sector enjoys economies of scale, and can thus offer services at cheaper prices and in greater variety, whereas the rural service sector cannot enjoy the advantages offered by scale economies. Our view concerning the economic impact of rural to urban migration on rural areas of origin agrees with Lipton's pessimistic view that rural out-migration is detrimental to the income and welfare of rural areas. However, our reasons for the reduction of rural income are different from those in Lipton's model. Lipton argued that rural income and welfare deteriorate mainly because of a shortage of human capital, younger workers and talent resulting from selective rural out-migration. Instead, we believe that rural income declines, first, because a rapid rural-urban migration creates a further shortage of farm labor supplies and increases rural wages, and thus reduces further the profitability of farming and, second, because a rapid rural-urban migration causes a further decline of the rural service sectors. Empirical tests of our major hypotheses using Korean census data from 1966, 1970, 1975, 1980 and 1985 support our own model much more than the neoclassical or Lipton's models. A kun (county) with a large out-migration had a smaller proportion of younger working aged people in the population, and a smaller proportion of highly educated workers. But the productivity of farm workers, measured in terms of fall crops (rice) purchased by the government per farmer or per hectare of irrigated land, did not decline despite the loss of these youths and of human capital. The kun having had a large out-migration had a larger proportion of the population in the farm sector and a smaller proportion in the service sector. The kun having had a large out-migration also had a lower income measured in terms of the proportion of households receiving welfare payments or the amount of provincial taxes paid per household. The lower incomes of these kuns might explain why the kuns that experienced a large out-migration had difficulty in mechanizing farming. Our policy suggestions based on the tests of the currently prevailing hypotheses are as follows: 1) The main cause of farming difficulties is not a lack of human capital, but the in­crease in production costs due to rural wage increases combined with depressed farm output prices. Therefore, a more effective way of helping farm economies is by increasing farm output prices. However, we are not sure whether an increase in farm output prices is desirable in terms of efficiency. 2) It might be worthwhile to attempt to increase the size of farmland holdings per farm household so that the mechanization of farming can be achieved more easily. 3) A kun with large out-migration suffers a deterioration in income and welfare. Therefore, the government should provide a form of subsidization similar to the adjustment assistance provided for international trade. This assistance should not be related to the level of farm output. Otherwise, there is a possibility that we might encourage farm production which would not be profitable in the absence of subsidies. 4) Government intervention in agricultural research and its dissemination, and large-scale social overhead projects in rural areas, carried out by the Korean government, might be desirable from both efficiency and equity points of view. Government interventions in research are justified because of the problems associated with the appropriation of knowledge, and government actions on large-scale projects are justified because they required collective action.

• Current Research on Agriculture and Life Sciences
• /
• v.8
• /
• pp.129-138
• /
• 1990

This study investigated the relationship between the cutflow of rural population and agricultural policy by using time series method. For the analytical tools, decomposition time series methods and regression technique were employed in computing seasonal fluctuation and cyclical fluctuation of population migration. Also, this study predicted farmhouse, rural population till the 2000's by means of the mathematical methods. The analytical forms employed in forecasting farmhouse, rural population were Exponential curve, Gompertz curve and Transcendental form. The major findings of this study were identified as follows: 1) Rural population and farmhouse population began to decrease from 1965 and hastily went down since 1975. Rural population which accounted for 36.4 percent, 35.6 percent of national population respectively in 1960 diminished about two times: 17.5 percent, 17.1 percent respectively. 2) The rapid decreasing of the rural population was caused because of the outflow of rural people to the urban regions. Of course, that was also caused from the natural decreases but the main reason was heavily affected more the former than the latter. In the outflowing course shaped from rural to the urban regions, rural people concentrated on such metropolis as Seoul, Pusan, Keanggi. But these trends were diminishing slowly. On the other hand, compared with that of the 1970's the migration to Keanggi was still increasing in the 1980's. That is, people altered the way of migration from the migration to Seoul, Pusan to the migration to the out-skirts of Seoul. 3) The seasonal fluctuation index of population migration has gone down since the June which the request of agricultural labor force increases and has turned to be greatly wanted in the March as result of decomposition time series method. As result of cyclical analysis, the cyclical patterns of migration have greatly 7 cycle. 4) As result of forecasting the rural and farmhouse population, rural and farmhouse population in the 2000 will be about 9,655(thousand/people) and 4,429(thousand/people) respectively. Thus, it is important to analyze the probloms that rural and farmhouse population will decrease or increase by the degree. But fairly defining the agricultural into a industry that supply the food, this problem - how much our nation need the rural and farmhouse population - is greatly significant too. Therefore, the basic problems of the agricultural including the outflows of rural people are the earning differentials between rural and urban regions. And we should regard the problems of the gap of relative incomes between rural and urban regions as the main task of the agricultural policy and treat the agricultural policy in the viewpoint of developing economic equilibrium than efficiency by using actively the natural resources of the rural regions.

• Korean Journal of Soil Science and Fertilizer
• /
• v.11 no.4
• /
• pp.213-233
• /
• 1979

It is generally agreed that the country's population will grow up to the level of 52 million by the year of 2000 and that due the active growth of industry, urbanization and road constructions, sizable portion of existing arable lands will be utilized for other purposes than agriculture in near future. From 1966 to 1977, it was estimated that, the average annual conversion of arable lands to other uses, was 12,909 ha. If this trend persists, it is predicted that from 1978 to 1991 when the 6th Five Years Economic Development Plan will terminate, approximately 181,000 ha of arable lands will be converted for other uses again. On the other hand, it is certain that the increased population (39 million in 1981, 45 million in 1991, 52 million in 2001) and the changes in food pattern along with the enhancement of living standards will bring about the phenomenal increase in demands for not only the staple food but also the livestock products such as meat, milk and eggs, vegetables and fruits. These future increased demands for various foods, naturally mean the increased needs for the expansion of arable lands at the same time. It is predicted that, if more activities than present scale are not taken for the expansion of arable lands, the national food self sufficiency level will drop from 79% in 1977 down to 62% in 1991. To meet the increased food demands in future, there are several ways and means. These will include the increased land use intensity, elevation of unit area yield levels, minimization of conversion of arable lands to other uses and expansion of arable lands through the reclamations of idle hillside lands and tidal lands. Among these, the expansion of arable lands through reclamations of idle hillside lands and tidal lands are more positive measures to cope with the increased production of foods in future. The reclamation of hillside lands demands more attention because it needs more advanced technologies in agronomical and engineering aspects, larger scale fundings and integrated socioeconomic considerations. In agromical aspects, the thechniques for early improvement of chemical and physical properties of soils, proper soil conservation measures and rational cropping systems are of particular importance. As to the financial supports to encourage the farmings in hillside land, much bold fund inputs are essential for the construction of roads, installation of irrigation and drainage facilities, soil conservation mechanisms, which will ensure the stabilized farming with reasonable incomes in the newly reclaimed lands.

• Journal of Korean Home Economics Education Association
• /
• v.34 no.3
• /
• pp.133-148
• /
• 2022

This study aims to explore the status and motives for using avatars and digital fashion items in the metaverse and to examine consumers' purchase satisfaction and future purchase intentions. We intend to provide implications for the development of avatars and fashion items, and the direction of the fashion industry and clothing education. For this purpose, the purchasing status, consumer motives for using avatars and digital fashion items, purchase satisfaction, and future purchase intentions were investigated, through a survey with 149 consumers aged 19 years or older, with the experience of using avatars. The results are as follows. First, the percentage of avatar ownership was high among women aged between 19 and 29, and those with low or high incomes. The younger group was more likely to make mobile phone purchases than the older group, and the older group was more likely to use credit cards. Even those respondents who owned avatars did not purchase frequently or spent a lot on items. On the other hand, in the case of fashion item purchases, the group spending more than 8,000 won was aged between 19 and 29, and the frequency and amount of purchases increased as income increase. Second, among the motives for using avatars and fashion items, the pursuit of pleasure had the greatest influence, and men paid more attention to self-expression through avatars than women. Third, the motive for vicarious satisfaction influenced purchase satisfaction, and the factors that influenced future purchase intention were vicarious satisfaction and stress relief. The results of this study suggests that avatars and fashion items should be developed considering factors that can relieve stress for all age groups, create a sense of unity among metaverse users, and provide satisfaction in a virtual world that is different from reality. In addition, education on how to use fashion items and consumption attitudes in education related to clothing life will be required.