- Volume 12 Issue 7
DOI QR Code
An Analysis on Convergence of Local Public Expenditures in Korea
우리나라 지방재정지출의 수렴 분석
- Kim, Sung Tai (Dept. of Economics, Cheongju University)
- 김성태 (청주대학교 경제학과)
- Received : 2014.05.20
- Accepted : 2014.07.20
- Published : 2014.07.28
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). 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.
Local public finance;Convergence;Per capita local public expenditure;Gini coefficient of public expenditure;Panel Data
Supported by : 청주대학교
- M. Skidmore, H. Toya, and D. Merriman, "Convergence in Government Spending: Theory and Cross-Country Evidence," Kyklos, 57, pp. 587-619, 2004. https://doi.org/10.1111/j.0023-5962.2004.00270.x
- M. P. Todaro, Economic Development, 5th Edition, Longman, New York, 1994.
- G. Tondl, Convergence after Divergence? Regional Growth in Europe, Springer: Wien/Heidelberg/New York, 2001.
- M. Terrasi, "Convergence and divergence across Italian regions," The Annals of Regional Science, vol. 33, 4, pp. 491-510, 1999. https://doi.org/10.1007/s001680050117
- Joseph White, "(Almost) Nothing New under the Sun: Why the Work of Budgeting Remains Incremental," Public Budgeting and Finance, 14(1), pp. 111-32, 1994.
- Seobin Hong and Man-Soo Joo, "Fiscal Convergence of Korean Autonomous Districts," Korean Journal of Public Finance, Volume 4 No. 3, pp. 67-94, 2011.
- Man-Soo Joo, "Analyzing the Convergence of Local Fiscal Regimes," Korea Review of Applied Economics, Volume 11 No. 3, pp. 147-172, 2009.
- Sung Tai Kim, Regional Economic Growth and Local Public Finance, Korea Institute of Local Finance, 2012.
- Sung Tai Kim, "Estimation of Congestion Rate of Local public Goods in Korea,"mimeo, 2014.
- Sung Tai Kim, Cho See Jung, and Keun Ho Roh, "Regional Economic Gap in Korea,"Kyong Je Hak Yon Gu, Vol. 39 No. 2, 363-389, 1991.
- M. Laurini, E. Andrade and P. L. Valls Pereira, "Income Convergence Clubs for Brazilian Municipalities: a non-parametric analysis: a non-parametric analysis," Applied Economics, 2005, 37, 2099-2118, 2005. https://doi.org/10.1080/00036840500218554
- D. Merriman and Mark Skidmore, "Convergence in State Government Health Care Spending and Fiscal Distress," Proceedings of the Ninety-Fourth Annual Conference of the National Tax Association, 2001.
- Choon-Geol Moon and Ki Hyun Park, "Empirical Investigation into Regional Convergence in Korea," Public Economy, Vol. 10 No. 2, pp. 49-79, 2005.
- T. Paas, A. Vork, A. Kuusk, and F. Schlitte, "Modelling Regional Income Convergence in EU-25", Paper of International Conference on Regional and Urban Modeling, Brussels, 2006.
- Wan Kyu Park, "Has the Economic Gap Among Regions been Decreasing?" Korea Review of Applied Economics, Volume 10 No. 1, pp. 221-248, 2008.
- D., Quah, "Galton's Fallacy and Tests of the Convergence Hypothesis", Scandinavian Journal of Economics, Vol. 95, No.4, pp. 427-443, 1993. https://doi.org/10.2307/3440905
- N.T. Saruc, I. Sagbas, and I. Cigerci, "Convergence in Public Expenditures and Tax Revenues Across the Turkish Provinces, mimeo, 2007.
- X. Sala-i-Martin., "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence", European Economic Review, Vol. 40, pp. 1325-1352, 1996. https://doi.org/10.1016/0014-2921(95)00029-1
- R. Shankar and A. Shah, "Bridging the Economic Divide within Nations-A Scoreboard on the Performance of Regional Development Policies in Reducing Regional Income Disparities", Policy Research Working Paper, No. 2717, The World Bank, 2001.
- P. Afexentiou and S. Apostolos, "Government Expenditures in the European Union: Do they converge or follow Wagner's law?" International Economic Journal, 10, pp. 33-47, 1996. https://doi.org/10.1080/10168739600080018
- P. Afexentiou. and S. Apostolos, "Testing for Government Spending Convergence Across Canadian Provinces," Public Finance Review, 16, pp. 55-74, 1999.
- C. Annala., "Have State And Local Fiscal Policies Become More Alike? Evidence of Beta Convergence Among Fiscal Policy Variables," Public Finance Review, 31(2), pp. 144-165, 2003. https://doi.org/10.1177/1091142102250327
- R. J. Barro and X. Sala-i-Martin, "Convergence across States and Regions", Brookings Papers on Economic Activity, Vol. 1, pp. 107-158, 1991.
- Vittorio Daniele "Regional convergence and public spending in Italy. Is there a correlation," MPRA, Paper No. 14334, 2009.
- Steven Deller and Mark Skidmore, "Convergence in Local Spending: Evidence from Wisconsin," University of Wisconsin-Madison Department of Agricultural and Applied Economics, Staff Paper No. 483, 2005.
- M. P. Drennan, J. Lobo, and D. Strumsky, "Unit Root Tests of Sigma Income Convergence across US Metropolitan Areas", Journal of Economic Geography, Vol. 4, pp. 583-595, 2004. https://doi.org/10.1093/jnlecg/lbh035
- S. G. Hall,, D. Robertson, and M. R. Wickens, Measuring Convergence of the EC Economies, Manchester School, 60, supplement, pp. 99-111, 1992.
- An Analysis on the Regional Convergence of Social Welfare Services in Korea vol.7, pp.4, 2016, https://doi.org/10.15207/JKCS.2016.7.4.217