This paper compares and analyzes the investment effect of the provinces of Chungnam, Gyeongbuk, and Jeonnam, which have the most recycling waste. The results show that Gyeongbuk has the highest production-inducing, value-added inducing, and employment-inducing effect based on a demand-driven model. Also, Jeonnam has a higher production-inducing effect than Chungnam, but Chungnam has a higher value-added inducing effect and employment-inducing effect than Jeonnam. These results arise from the differences in industrial structure in the two provinces.

[Key Words] Local Government, Industrial Structure, Investment Effect