The impact of compact city characteristics on economic performance of cities in different sizes

This study examines how compact city strategies influence economic performance across cities of different sizes in 229 municipal-level cities in South Korea. While existing research has highlighted the economic benefits of compact urban forms, few studies have examined how these effects vary by city size. To fill this gap, cities were classified into large, medium, and small groups using a K-means clustering algorithm based on population density and administrative area. A regression analysis was then conducted to assess how compact city characteristics affect economic performance. The results show that compact spatial structure and transit accessibility significantly enhance economic performance only in large cities, where agglomeration economies are more likely to occur. In contrast, compact city strategies show limited economic benefits in medium and small cities. Nevertheless, livability-related factors, especially mixed land use, positively influenced economic performance across all city sizes. Additionally, green space demonstrated scale-specific effects. These findings emphasize the need for scale-sensitive urban planning. Compact city strategies should not be applied uniformly but should be tailored to the spatial and economic conditions of each city size. This study provides empirical evidence for the development of customized strategies that enhance the effectiveness and sustainability of local economic development.