The purpose of this study is to analyze the economic impacts of public infrastructure investment and economic integration on the Northen Area of Korean peninsula. The growth sources for these areas are classified into a decrease in logistic costs by construction of two Asian Highways (AH1 and AH6) originating from Korea, an increase in regional investments on China, Russia, and North Korea by $ 61.8 billion, and deregulation on spatial mobility of commodities across the regions. The effects are calibrated with a simultaneous equation system of regional incomes and interregional trades.
The two highways going from Korea to China and Russia could lead to reductions of the logistic costs (time) by 33%~54% between Seoul and North-east China, and by 44%~56% between Seoul and Far Eastern Federal Districts of Russia. The construction of the Asian Highway, the increase in investment and the deregulation will create the economies of scale and create and expand new markets, which will have a positive effect on the economies of the countries of Northen Area.

Abstract
Ⅰ. 서론
Ⅱ. 이론적 배경
Ⅲ. 북방지역 개발의 지역경제 효과
Ⅳ. 결론
인용문헌 References