The Effect of Spatial Structure and Dynamic Externalities on Local Growth in Seoul Metropolitan Area

The objective this study is to explain the effect of dynamic externalities and spatial structure on urban growth through small-scale unit analysis. Empirical models measure the degree of specialisation, diversity, and competition and the effect in Seoul Metropolitan Area (SMA). Positive and negative agglomeration effects occur simultaneously in sub-centers depending on the industrial type. Decentralisation occurs because of the manufacturing industry, whereas the service industry remains influential at the urban center. Dynamic externalities at sub-center in SMA show similar patterns in most industries. Lower growth in highly specialised industries and high growth in more diversified industries.