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An Analysis on Convergence of Local Public Expenditures in Korea

우리나라 지방재정지출의 수렴 분석

  • Received : 2014.05.20
  • Accepted : 2014.07.20
  • Published : 2014.07.28

Abstract

This paper analyzes whether local public expenditures have converged during the 1985-2011 periods in Korea, using the sixteen metropolitan and provincial governments data. We analyze the convergence of per capita real local public expenditures in terms of both static view and dynamic view of convergence. Furthermore, we derive the estimating equation for per capita real local government expenditure growth function from theoretical model based on Skidmore et al.(2004)[23]. The main results from empirical analyses are such that an increase in aged people helped local government expenditures increase. Also, we found that the convergence speed of economic expenditure is greater than that of social welfare expenditure. Similarly the convergence speed of public capital expenditure is greater than that of public consumption expenditure. In the future we had better examine the convergence of local public goods taking into account their congestion rates.

Keywords

Local public finance;Convergence;Per capita local public expenditure;Gini coefficient of public expenditure;Panel Data

Acknowledgement

Supported by : 청주대학교

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