All Issue

2025 Vol.37, Issue 1

Research Article

Analysis of the Effects of the Rural Convergence Industry Policy on Regional Agricultural Economy
Yunmi Hwang1
,
Jonghwa Kim2*
1Graduate Student, Department of Agricultural and Resource Economics, Kangwon National University, Chuncheon 24341, Korea
2Assistant Professor, Department of Agricultural and Resource Economics, Kangwon National University, Chuncheon 24341, Korea
*Corresponding Author
31 March 2025. pp. 1-15
PDF XML Citation
Abstract

The rural convergence industry (RCI) is a key strategy for enhancing the productivity and competitiveness of regional agriculture and promoting sustainability. This study analyzed the effects of the RCI policy on the regional economy using a fixed-effects two-stage least squares (FE-2SLS) model. The analysis revealed that an increase in the number of certified RCI operators positively impacts the agricultural, forestry, and fishery gross regional domestic product (GRDP) by 3.1 billion won. This suggests that the RCI contributes positively to agriculture-related economic activities. However, a trend was observed in which an increase in the proportion of small farmers correlates with a decrease in the agricultural, forestry, and fishery GRDP. This indicates that while the participation of small farmers enhances the policy’s effectiveness, their low productivity limits their economic contribution. Based on these findings, this study suggests the need for promoting inter-industry convergence and providing practical support for small-scale farmers.

Keywords
Agricultural gross regional domestic product
Fixed-effects two-stage least squares model
Regional agricultural economy
Rural convergence industry
Small farmers
References
1

Cho, C. D., Park, D. W. (2016) Application of Environmental Management System Model for the Local Food Industry and the Analysis. Asia-Pac J Biz Vent Entrep 44:233-247.

10.16972/apjbve.11.2.201604.233
2

Choi, A. L. (2014) Analysis on crowding out effect of government R&D subsidy on corporate R&D investment. Master Thesis, Seoul National University, Seoul, Korea.

3

Chung, D. C., Sung, J. I., Sim, J. H. (2016) Directions and Challenges for Promoting the 6th Industry at the Regional Level. Agricultural Policy Focus 123. Korea Rural Economic Institute, Korea.

4

Han, S. H. (2015) A Study on Development of the Korea Agricultural Population Forecasting Model and long-term Prediction. J Korea Acad-Ind Coop Soc 16:1-10.

10.5762/KAIS.2015.16.6.3797
5

Hwang, J. H., Lee, S. Y. (2016) Types of Convergence in the 6th Industrialization of Agriculture and Effects on Increasing Farm Income. J Rural Dev 39:1-28.

6

Hwang, S. H., Kim, J. I. (2023) Analysis of the Effect of Farmers' Use of Information Devices on the Sales of Agricultural Products. J Ind Conv 21:133-142.

10.22678/JIC.2023.21.9.133
7

Hwang, T. H., Lee, J. H. (2020) A Study on the Effect of Relationship Marketing on Service Quality, Customer Satisfaction and Loyalty of Rural Tourism Villages. J Tour & Leis Res 32:169-193.

10.31336/JTLR.2020.3.32.3.169
8

Jang, H. W., Lee, M. S., You, S. Y. (2013) A study of Consumer Perception of Local Food. Korean J Agri Mgmt Policy 40:248-269.

9

Jeong, E. M., Choi, B. O., Jeong, C. S., Jeong, H. Y. (2018) Analysis of the Expected Effects of Regional Food Plans and Future Challenges. Occasional Research Project P245. Korea Rural Economic Institute, Korea.

10

Jeong, H. K., Kim, C. G., Moon, D. H. (2013) Impacts of Abnormal Weather Factors on Rice Production. J Climate Change Res 4:317-330.

11

Jin, H. R., Chae, H. S. (2013) Status analysis and improvement of agricultural products packaging design of rural tourism village for activating the sixth industry of farm villages & agriculture. J Basic Des & Art 14:599-609.

12

Joo, H. J. (2020) An Analysis on the Factors Affecting Consumers' Perception and Satisfaction in the Sixth Industry. J Korea Cont Assoc 20:119-130.

13

Jung, H. H., Lee, K. R., Hur, N. H., Yu, H. R., Kwon, O. S., Kim, Y. S., Kim, H. S., Lee, Y. O. (2013) The Multifunctionality of Agriculture and Policies for Promoting Multifunctional Agriculture (2013-12 ed). pp.1-130. Chungnam Development Institute, Korea.

14

Kim, D. S. (2013) Creation of Jobs through the 6th Industry and Returning to Farming and Rural Living (384 ed). p.162. Korea Research Institute for Human Settlements, Korea.

15

Kim, G. S., Lee, S. K. (2014) A Study on Influence Factors of Inequality of Farm Household Income. J of the KRSA 30:87-102.

16

Kim, H. S., Hwang, S. W. (2009) Time Lag Approach of Korean Agricultural Policy: On the emphasis of Farm Income Support (Compensation) Policy and Agricultural Restructuring Policy. Korean Public Admin Q 21:169-201.

17

Kim, J. A., Chai, J. H. (2009) Analysis on Income Decision Factor by Farmhouse Type. J Ind Econ Biz 22:1641-1658.

18

Kim, J. H. (2010) The Analysis of Local Economic Capacity through the Estimation of GRDP. Korean Local Admin Rev 24:207-235.

19

Kim, J. T. (2016) Exploring Industrial Function Combining Factors for Each Type in the 6th Industry Based on Decision Tree Analysis. J Agri Ext Community Dev 23:243-255.

10.12653/jecd.2016.23.3.0243
20

Kim, K. C., Mun, E. G., Lee, S. S., Koo, S. M., Lee, D. K., Son, Y. H. (2017) A Study on the Improvements and Analysis on Ongoing State of Rural Convergence Industrialization District. J Korean Soc Rural Plan 23:107-120.

10.7851/Ksrp.2017.23.3.107
21

Kim, M. B., Oh, N. W., Hwang, E. S. (2016) Changes in Income Structure by Farm Type and Policy Implications. Agricultural Policy Focus 132. Korea Rural Economic Institute, Korea.

22

Kim, M. H., Kim, C. H., Park, D. G. (2019) South Korean Agriculture in the World through Statistics. Other Research Report 160. Korea Rural Economic Institute, Korea.

23

Kim, P., Choi, H. B. (2022) The Effect of Income Aspirations on Happiness: Focusing on GRDP differences. Korea J Local Gov Stud 25:401-433.

10.20484/klog.25.4.16
24

Kim, S. T. (2014) The Study on Tourism Demand Forecasting : Focused on Panel Data Analysis Method. J Tour & Leis Res 26:115-129.

25

Kim, T. G., Heo, J. N. (2011) The Sixth Industrialization of Agriculture and Strategies for Value Creation (R653-4 ed). Korea Rural Economic Institute, Korea.

26

Kim, T. Y., Im, J. B., An, D. H. (2012) The Effect of Public Subsidies on Intra and Inter regional Income Inequality of Farm Households. J Agri Econ 53:41-62.

27

Kim, Y. J., Kang, M. J., Yu, B. B. (2020) A study on the Farm Income Stabilization Effect of Agricultural Subsidy. Basic Research 2020-15. Gyeonggi Research Institute, Korea.

28

Kim, Y. L. (2024) The Crisis of Rural Decline: The Future of South Korea in 10 Years. KREI Forum. Korea Rural Economic Institute, Korea.

29

Kim, Y. O., Lee, B. K. (2000) The Structural Change of Agricultural Population and Women Farm Managers in Korea. J Rural Soc 10:7-35.

30

Kosis (2023) Key Indicators (Farm Economy). Farm Household Economy Survey, Korea.

31

Lee, G. M. (2017) Sustainable Development, Agriculture and Rural Areas, and an Aging Society. Rural res 59:73-78.

32

Lee, S. H., Kang, D. W., Goh, Y. G., Moon, Y. H., Park, T. K., Lee, S. B., Park, S. J., Ahn, J. K., Choi, J. M., Hyun, E. J., Song, J. Y., Sung, Y. J. (2024) Local Industry and Employment Policy (13 ed). pp.1-116. Korea Employment Information Service, Korea.

33

Min, I. S. (2008) Instrumental Variable Estimation (4) in Stata (1). Korean J Stata 1:58-68.

34

Min, I. S., Choi, P. S. (2012) Panel Data Analysis in STATA (3 ed). Jiphil Media, Korea.

35

Park, J. H., Hwang, J. H., Lee, S. W. (2014) The effect of the 6th industrialization in agriculture on farm and off-farm income. J Korean Soc Rural Plan 20:193-208.

10.7851/ksrp.2014.20.4.193
36

Park, S. H. (2013) The Development Direction of Rural Tourism for the Sixth Industrialization of Rural Areas. Agricultural Policy Focus 66. Korea Rural Economic Institute, Korea.

37

Sim, J. H., Chung, D. C. (2016) Let's Leap Forward with Rural Development and Convergence Industries. 19th Agricultural Outlook. Korea Rural Economic Institute, Korea.

38

Woo, B. J., Kim, L. I. (2016) Agricultural and Rural Economic Trends. Fall 2016. Korea Rural Economic Institute, Korea.

39

Yang, J. I., Lee, J. H., Hwang, D. Y. (2014) Empirical Study on the Activation Plan for 6th Industrialization of Rural Agricultural Resources: Focus on the Field Experts and the Complementary Demand. J Korean Soc Rural Plan 20:111-120.

10.7851/ksrp.2014.20.3.111
40

Yang, S. Y., Yu, W., Kim, H. J. (2004) A Study of GRDP Estimation for Traffic Demand Prediction. J Korean Soc Transport 46:1-6.

41

Yi, D. Y., Um, S. H., Son, Y. H. (2021) Operation Management Appraisal and the Classification of Rural Tourism Villages - The Cases of Yang-Pyeong Rural Tourism Villages -. J Korean Soc Rural Plan 27:23-34.

42

Yoo, S. W., Ryu, S. Y. (2015) Enhancing the Value of Agriculture·Rural Communities by Activating the Sixth Industry: Focused on PR Communication Strategies. Int J Tour Hosp Res 29:77-90.

43

Yoon, B. S. (2008) Some Alternative Suggestions to the Revitalization of Local Food Processing. J Ind Econ Biz 21:501-522.

44

Yu, C. J., Um, J. B. (2022) A Study on the Effect of Store Attributes of Local Food on User Satisfaction. J Korea Acad Ind Coop Soc 23:230-236.

10.5762/KAIS.2022.23.6.230
Information
  • Publisher :Agriculture and Life Sciences Research Institute, Kangwon National University
  • Publisher(Ko) :None
  • Journal Title :Journal of Agricultural, Life and Environmental Sciences
  • Journal Title(Ko) :농업생명환경연구
  • Volume : 37
  • No :1
  • Pages :1-15
  • Received Date : 2024-10-31
  • Revised Date : 2025-01-03
  • Accepted Date : 2025-01-07
  • DOI :https://doi.org/10.22698/jales.20250001
Journal Informaiton Journal of Agricultural, Life and Environmental Sciences Journal of Agricultural, Life and Environmental Sciences
Online Submission & Review System
Journal Informaiton Journal Informaiton - close