• Economic Analysis
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• v.25 no.3
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• pp.100-137
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• 2019

In this study, I analyzed the effects of government spending on macro variables and on each industry by using a factor augmented vector autoregressive model (FAVAR) and 167 macro-variables in Korea since 2000. The results reveal that the effects of two types of government spending - government consumption and government investment - greatly differ, therefore it is better to consider the two types of spending separately for a more precise analysis. The stimulus effects of government consumption are clear, but those of government investment are not. In addition, the crowding-out effects of government spending take place through the current account deficit channel rather than the traditional crowding-out channel, reducing private consumption and investment. Both types of government spending show a positive effect on the construction industry. Also, an increase in government consumption stimulates output in various manufacturing and service sectors.

• Economic Analysis
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• v.27 no.3
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• pp.33-60
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• 2021

This study estimates the fiscal multiplier using Input-Output table panel data from year of 2010 to 2018. Considering the endogeneity of the government expenditure, this study uses the share of government expenditure by sector in the initial period as an instrument variable. The estimation from the panel fixed effect instrumental variables model shows that the estimate for the current period of government expenditure is 1.15~1.22 and the estimate for the cumulative multiplier is 1.23~1.32 depending on the method of controlling time trend. Since the general equilibrium effect absorbed by the time-fixed effect in the estimation equation, the estimated multiplier in this study may be different from the multiplier of the economy as a whole. The general equilibrium effect depends on the response of monetary policy, changes in tax policy, and interaction between sectors.

• Korean Journal of Social Welfare
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• v.59 no.1
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• pp.329-351
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• 2007

This study analyzes the changes in individual local government's social spending from 1995 to 2004 in South Korea. Using the pooled time-series and cross-sectional data of 226 basic-level local governments, the resulting analyses of an error correction model are very interesting: First, a rising local population led to an immediate increase in social spending; Secondly, local governments gradually increased social spending when the elderly ratio had been high, but the levels of social spending in the previous year and local economy related spending level had been low. Thirdly, there were no spending changes associated with local elections and partisan politics. Fourthly, both cooperative and competitive intergovernmental relations had the most significant effect on the social spending and reduced geographical disparities in the level of spending across localities. In conclusion, this study suggests that we establish a more comprehensive intergovernmental network which lead to territorial justice in social welfare.

• Proceedings of the Korean Association for Survey Research Conference
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• 2000.11a
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• pp.109-125
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• 2000

본 논문은 3개 기초자치단체 지역주민들을 중심으로 이들 지방정부의 투자우선지출 순위에 관한 지역주민의 의식을 분석해 보았다. 이러한 분석은 근본적으로 지방정부의 공공지출을 통한 투자사업 활동이 지역주민의 선호순위와 일치하는지를 검증해보기 위한 선행연구로서의 의미를 가지고 있다. 지역에 따른 행정기능별 우선지출 순위분석에서 볼 때 일반행정부문의 경우 세지역 모두 기획조정분야에 가장 큰 우선지출을 요구하고 있고 산업경제 부문의 경우 지역특산물생산과 지역공단육성에 큰 관심을 보이고 있으며 사회복지부문의 경우 쓰레기처리 및 폐기물관리 등에 우선적인 관심을 보여 생활환경의 정비에 큰 관심이 있는 것으로 분석되었다. 지역개발사업의 경우 도시계획 및 도시정비사업이 그리고 민방위부문의 경우 재난관리와 화재예방의 부문에 특히 우선지출의 관심을 보이고 있었다. 지방자치단체의 공공지출에 영향을 미치는 주요요인들은 주민참여도, 정부.기업관계, 정치적 연계, 기획과 예산구조, 공공투자 재원보조, 등으로 구성되어 있으나 각 요인별로 구성변인에 따른 지역주민간의 인식은 다르게 나타남을 알 수 있었다. 이상과 같은 지역주민들의 공공지출형태의 다양성과 여러 기대조건들을 충족시키고 그럼으로써 행정서비스에 대한 지역주민의 만족도를 극대화하기 위해서는 각 지방정부는 그들 지역내 특수한 사회 경제적 여건하에서 새로운 고객관리전략을 수립하여야 할 것이다.

• Korean Journal of Social Welfare Studies
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• v.42 no.3
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• pp.207-231
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• 2011

The purpose of this study is to investigate the effect of the intergovernment relationship on the local government's social welfare expenditure. The data of 230 local governments from 2003 to 2008 were analyzed with the PCSE(Panel Corrected Standard Errors) Model of Beck and Kats. The results were as follow. First, financial transfer from the higher governments increase the social welfare expenditure of the local governments. Second, the party structure, that is the political relationships among local, regional, and central governments, affect the social welfare expenditure of the local governments. Third, the local governments compete each other to expand the social welfare expenditure in Korea. These results suggest that the relationship of local governments with the higher ones as well as the community factors is important in Korea, where the centralization is still strong in the local autonomy system, to understand the development of social welfare.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.1
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• pp.188-194
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• 2011

Using cross-section of 83 countries, this paper empirically examines the relationship between corruption and government expenditure volatility. A country's corruption is denoted by either control of corruption, compiled by Kaufmann et al. (2008), or corruption perceptions index, provided by Transparency International. In addition, a country's government expenditure volatility is measured by the standard deviation of the change ratio of government expenditure from 1990 to 2005. Regression results suggest that a country's control of corruption and corruption perceptions index (higher ratings signifying more transparency) are significantly and negatively associated with the volatility of government expenditure. However, the estimated coefficients of corruption perceptions index show somewhat reduced statistical significances. The results are robust to the sub-sample of countries excluding European OECD countries. Therefore, the regression results suggest corrupt bureaucrats are able to periodically change economic rules of the game, which results in the possibility of a higher variance in government expenditure.

• Journal of the Economic Geographical Society of Korea
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• v.25 no.4
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• pp.629-640
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• 2022

This study analyzed the relationship between local government size and regional economic growth using regional data from 2002 to 2020. By dividing local government expenditure into social development expenditure and economic development expenditure, economic growth and the inverted U-shaped Armey curve were verified, and the optimal size of local government expenditure was examined. In particular, the AMG estimation method considering the cross-sectional dependence and regional heterogeneity existing in the panel data was utilized. As a result of the analysis, it was found that there was an inverted U-shaped relationship between local fiscal expenditure and regional economic growth. When the proportion of total local fiscal expenditure is 7.63% of GRDP and social development expenditure is 3.45%, it is found that the optimal size of expenditure can maximize the regional economic growth rate. Local governments should increase the effectiveness of public expenditure policies by considering these points.

• The Journal of the Korea Contents Association
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• v.20 no.7
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• pp.602-617
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• 2020

The aim of this study is to evaluate the effects of income-led growth path induced by government and consumption expenditures. Six of Nordic countries, Latin American countries and South Korea are selected for this purpose due to the fact that these countries have been pursuing income-led growth policy for more than the last decade except South Korea. The structural equation is formulated based on the government and consumption expenditures with lagged variable, and the GLMs estimation is employed for empirical analysis. Although the impacts are not overwhelmingly effective, empirical evidence suggests that income-led growth path contributes to stimulate economic activities which are associated with increasing in national income in Nordic countries and South Korea. However, the income-led growth path is quite weakly operated. Furthermore, it is even unstable in Latin American countries. In addition to this, the policy target would rather be focused on middle consumption group than low consumption group. Overall, it would be concluded that the income-led growth policy should be implemented for complementary purpose. And, it also has to be mentioned that sustainable growth may not be achievable by this policy.

• Journal of Technology Innovation
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• v.21 no.2
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• pp.137-167
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• 2013

This article estimates the scale of impact of expanding governmental fiscal expenditure for R&D investment on the private business enterprise's investment for R&D, and the relationship between business enterprise and university for expanding investment of R&D. According to my results, first, an expanding fiscal expenditure from government for R&D investment leads to increase R&D investment from business enterprise. However, an expanding expenditure from university rather leads to decrease R&D investment from business enterprise. Secondly, the crowding-out effect of expanding R&D investment from University on business enterprise's is very strong, and it is affected by structural changes such as the country's economic power, fiscal stance and cyclical volatility. Third, the more governmental expenditure on university expansive is, the stronger asymmetric relationship between business enterprise and university is, and investment sources of university from business enterprise is the main factor of this relationship. Finally, it is not easy to solve out this asymmetric relationship even through the governmental subsidy.

• 사회경제평론
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• no.38
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• pp.163-198
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• 2012

This analysis suggests a post Keynesian macro-dynamic model that integrates a financial variable, firm's debt, into the post Keynesian model of growth and distribution. On the basis of it, this study analyzes the effects of government financial expenditure on capital accumulation empirically. It also studies empirically whether a regime shift has arisen since Asian financial crisis in 1997. This paper shows that government financial expenditure has exerted an positive effect on capital accumulation. This empirical result supports government intervention in financial market in recurrence of financial crises. This study also finds grounds for a change in accumulation regime since Asian financial crisis in 1997.