• Title/Summary/Keyword: Government Expenditure

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The Effects of R&D Public Subsidies on Service Firms' Innovation Activities (연구개발 공적보조금이 서비스기업의 혁신활동에 미치는 영향)

  • Kim, Sang-Sin
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.11 no.5
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    • pp.1829-1837
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    • 2010
  • During the last year, public expenditures which provided the central and local governments for boosting research and development (R&D) activities of the private sector has been constantly increasing. 17 percent of public total R&D expenditure supported to private sector and 9 percent of R&D expenditure in service sector were public R&D funding. However, studies evaluating the impact of public R&D subsidies are quite few. The aim of this study empirically investigate the average effects of public R&D subsidies on the innovation activities in private sector, specifically those engaged in Korean service firms by using Propensity Score Matching(PSM) method. The effect of R&D subsidies is derived from either qualitative and quantitative outcomes of innovation activities, which is defined as the difference between innovation outcome of the treatment group (receiving R&D subsidies) and that of the control group (non receiving R&D subsidies) after the matching method. As a result of empirical analysis, government R&D grants stimulate only firm-first innovation outcomes in service firms. It is represent that public R&D subsidies cannot be contributed to level of national innovation and the total amount of national innovation activities but can enhance firm competitiveness from increasing firm-first innovation activities.

A Study on Optimal Auditing Under the Living Wage System (생계급여하에서의 최적 소득조사)

  • Yoo, Hanwook
    • KDI Journal of Economic Policy
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    • v.31 no.1
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    • pp.207-237
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    • 2009
  • One of the main problems in Korea's public assistance program, the NBLS (National Basic Livelihood Security), is that the loophole of welfare system is continuously growing. Living wage program is the largest sub-program of the NBLS, and the most important determinant of amount of living wage for each beneficiary is the level of reported income. Therefore, accurate and effective income detection is essential in improving policy effects and furthermore reducing the leakage of wage expenditure as beneficiaries always have an incentive to underreport their income. Since most of them do not pay income tax, the welfare authority should exert an independent effort to effectively detect their income. Considering that living wage is a special kind of income tax of which marginal tax rate is -1, one can apply a classical theory of tax evasion to understand illegal or excessive receipt of living wage caused by income underreporting. Utilizing a classical theory given by Alingham and Sandmo (1972), this paper provides a theoretical analysis of the optimal income reporting of the beneficiary. Then an optimization problem is constructed from the government's viewpoint to derive optimal income detecting device (auditing). This paper proves that cut-off discriminated auditing outperforms random auditing and cut-off auditing which implies if the government assigns a positive audit probability to every reported income less than a certain level and the probability is inversely proportional to the level of reported income, it can minimize underreporting and then gradually reduce the leakage of wage expenditure.

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Analysis of the Effect of Economic Growth of China's Fiscal Decentralization (재정분권화가 중국 경제성장에 미친 영향 분석)

  • Choi, Won Ick
    • International Area Studies Review
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    • v.14 no.3
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    • pp.157-177
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    • 2010
  • This study analyzes the effect of fiscal decentralization on economic growth by using each province city's panel data of China from 1985 to 2008. By using Recently developed fiscal decentralization index and autonomy of local government quantified this study finds the following conclusions. The increase of inflation rate affects positive effect on Chinese economy. This is the trade-off relationship with the growth of Chinese economy by the Phillips Curve theory. So this suggests the instability of Chinese economy. The affiliation of WTO of China shows positive effect on Chinese economy. This can be translated as the real evidence about free trade theory of Classical School. Expenditure decentralization in China led to economic growth and revenue decentralization also affected positively although it was not as much as expenditure decentralization's effect. Central tax and local tax negatively influenced economic growth; and differently from our expectation, local government autonomy quantified was not relevant to economic growth.

Korea and Japan Comparison Study of Distribution Industry: Focus on Input-out Analysis (유통산업의 한일비교 연구 - 산업연관분석을 중심으로 -)

  • Jho, Kwang-Hyun
    • Journal of Distribution Research
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    • v.16 no.5
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    • pp.171-192
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    • 2011
  • This paper focuses on the retail industry of industrial share of the GDP, productivity of distribution industry and input-out analysis between Korea and Japan, also results are summarized as follows. First, the share of GDP in agriculture, forestry and fisheries of the both countries is falling. That of manufacture increases in South Korea, while Japan is falling. While distribution industry shows vice versa. Employed population by industry is falling both countries also. The relative labor productivity shows that agriculture, forestry and fisheries, retail industry needs more labor, while manufacture has been met for both countries. Second, compare to Japan, the retail industry of Korea has been increased since 1990. Likewise, overall productivity of distribution industry in Korea has been increased while almost that of Japan has declined. Third, production inducement effects of Japan are greater than that of Korea. On the other hand, import inducement effects show vice versa. Fourth, as shown from the final demand of distribution industry and the rate of dependence on production inducement, we can see that the “increase in stocks” increases while gross government fixed capital formation shows vice versa. Korea's private consumption expenditure increases while Japan shows versa. South Korea's government consumption expenditure and exports are rising, on the other hand, that of Japan is declining. Fifth, the rate of dependence on distribution industry and import inducement shows the same tendency from both countries. As we can see from the private consumption expenditure, government consumption expenditure, gross government fixed capital formation, gross private fixed capital formation, increase in stocks, the rate of dependence on import inducement is more effective than the rate of dependence on production inducement. While the exports are comparatively ineffective. Sixth, the degrees of influence of retail industry are similar between Korea and Japan, while sensitivity of the Korean industry has been weakened. In this sense, strong policies are needed to boost the industry. Seventh, the investments in the retail industry of Korea showed the public-led trend, while Japan showed private sector-led investment trend. The investment trend of Korea's retail industry will be switched into private sector-led investment step by step in the future. This finding will be an important clue to set the policy direction of Korea distribution industry. Finally, both Korea and Japan are still in need of employment in retail industry. Not addressed in this paper, such as value-added-induced effects, employment inducement effect, will be remaining challenges in the following paper.

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An Empirical Investigation of Triple Helix and National Innovation System Dynamics in ASEAN-5 Economies

  • Afza, Munshi Naser Ibne;Mansur, Kasim Bin HJ. MD.;Sulong, Rini Suryati
    • Asian Journal of Innovation and Policy
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    • v.6 no.3
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    • pp.313-331
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    • 2017
  • This paper exhibits the concept of Triple Helix model to explain and link university-industry-government (Triple Helix) connections to national innovation systems theory. The driver of this paper is to test the dynamics of Triple Helix concept under national innovation system in the Association of South East Asian Countries (ASEAN)-5 economies. Panel econometric analysis with cross-sectional dependence (CD) test is applied to investigate the relationship amongst Triple Helix variables. The empirical analysis employs innovation indicators of five founding ASEAN countries namely Malaysia, Indonesia, Singapore, the Philippines and Thailand for the period of 2000-2015 from an existing WDI and WCY database. Econometric results support the two research questions of this study; firstly, there is a significant relationship between innovation outcome and its key drivers under Triple Helix context of National Innovation System in ASEAN-5 economies; secondly, the extent of the relationship among government R&D expenditure with high-tech productions are positive and significant while new ideas coming from universities as scientific publications and high-tech production have positive relationship but not significant yet in ASEAN-5 countries. Overall labor productivity is positive and significant with innovation outcomes in ASEAN-5.

Rent-seeking for Budgetary Allocations in Korean Fisheries (수산예산의 배분변화에 관한 분석- 지대추구이론을 중심으로 -)

  • SHIN, Yong-Min
    • Journal of Fisheries and Marine Sciences Education
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    • v.17 no.2
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    • pp.180-192
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    • 2005
  • In this paper I tried quantitative measures of the rent-seeking for budgetary allocations in Korean fisheries. There is a great deal of ignorance about the level of rent-seeking that takes place as a consequence of government expenditures and the potential for influencing their allocation, and so the attempt by Kats and Rosenberg(1989) to measure this in terms of the extent of annual changes in these allocations was a significant step forward. The opportunity to concentrate net public expenditure benefits within the fiscal function of the state gives rise to rent-seeking by special interest taxpayer-citizens through government budget allocations, special interest groups and coalitions of special interest groups. There are several important implications of budgetary rent-seeking. Budgetary rent-seeking is composed of 'income' and substitution effects, the budgetary 'income' effect is the general increase in government expenditures from one period to another. According to result of this analysis, average expenditures were 17.0% of total fisheries budget in 1966-2005. Therefore, distribution of fisheries budget should be converted by indirect support systems to reduce these rent-seeking behaviors.

A Study on the Improvement for Korean Manufacturing Firm's Innovation Capabilities (국내 제조기업의 혁신역량 제고를 위한 고찰)

  • Seo, Young-woong;Choi, Seok-joon
    • Journal of Technology Innovation
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    • v.24 no.1
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    • pp.169-188
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    • 2016
  • This study examines each factor's effects on the firm's innovation method selection by comparing with EU countries and suggests policy implications for improving firm's innovation capabilities, confirming the changes with the latest data. We used similar data and model for this, and as a result, Korea is located between intermediate group and catching-up group in 2005. In 2014, we found partially positive changes; increase in R&D cost ratio along innovation expenditure, conducting in-house innovation, and R&D in high-tech sector. Therefore, it is required to support innovation expenditure and complement the system for high-tech firms, those that apply patent or conduct industry-university/government research institute linkage in order to improve innovation capabilities.

Changes in Japan Healthcare System and New Directions of Hospital Management (일본 의료시스템의 변화와 병원 경영의 새로운 방향)

  • Inoue, Takahiro;Hada, Masashi;Yuzawa, Atsuko;Lee, Sei-Hoon;Kwon, Young-Dae
    • Korea Journal of Hospital Management
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    • v.13 no.4
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    • pp.101-118
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    • 2008
  • Japanese national health expenditure was 8.0% of GDP in 2004, and it was lower than average of OECD countries. But it has increased rapidly in recent years. Japan has relatively many acute care beds and high-price medical equipments, and the average length of stay is long. Japanese government is trying healthcare reform to contain healthcare expenditure, increase the efficiency of management and improve the quality of healthcare. As healthcare policies for hospitals such as DPC (Diagnosis Procedure Combination) for acute care beds, reduction of long-term care beds, and functional differentiation and liaison among healthcare institutions are implemented, the number of hospitals in financial difficulties is increasing. The serious situation urges hospitals to adapt to changes and search new directions of management. They need to establish and implement appropriate positioning strategy, and increase management efficiencies. Korean healthcare system has similarities with Japanese in many aspects. The recent reform and changes in Japanese healthcare system and hospitals give suggestions to Korean hospitals as to how they can prepare for environmental changes and improve management.

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A Study on the German Mandatory Prescription System : Implications for the Korean System (독일 의약분업제도 운영에 관한 연구 : 한국 의약분업제도에의 함의)

  • Lee, Jun-Young
    • Korean Journal of Social Welfare
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    • v.46
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    • pp.349-376
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    • 2001
  • The objectives of this study is to examine the German mandatory prescription system in terms of the applicability and restriction of the pharmaceutical policy in order to obtain some useful implications for solving the problems in Korean prescription system. Recently, in Germany, an issue about the security of the prescription, the price control of the pharmaceuticals and the containment of the increasing prescription expenditure has been intensively discussed. Similar problems are also occurred in Korea. So, the policy measurements of Germany could be used in Korea. But it could not easy to introduce the German policy measurements in Korea because of the social-institutional differences between the two countries, which are following; (1) Korea has a short experience with the mandatory prescription system, (2) the German concept of the management differs from that of the Korea, (3) the subscribers and the patients are excluded from the decision making process, (4) the medical service providers often resist against reform plans. For the stable development of the Korean prescription system the principle of self-government, the collective bargaining concept for cost containment, and social consensus about optimal expenditure of the pharmaceuticals are expected to be needed.

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Influence Factors on Health and Medical of Retirees Expense to Public Pension Recipients (공적연금유형에 따른 은퇴자들의 보건의료비지출 결정요인)

  • Choi, Ryoung;Hwang, Byung Deog
    • Health Policy and Management
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    • v.25 no.2
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    • pp.80-89
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    • 2015
  • Background: This study aims to identify the monthly average medical expenses of public pension recipients, and analyze the determinants of total health and medical expenses and Western and Oriental medicine expenses, medical service expenses, and medical supplies expenses. Methods: This study used the fifth year data of 2013 out of the raw data of the Korean Retirement and Income Study collected by the National Pension Research Institute. This study conducted t-test, analysis of variance, and linear regression to verify publicly the relevance between pension recipients' general characteristics and health and medical expenses status using IBM SPSS ver. 21.0 for data analysis. Results: It was analyzed that there is a difference in the spending of expenditure and health care costs according to public pension recipients. Medical expenses of the national pensioners was higher compared to the special corporate pensioners. The national pensioner is related expenditure size, education level, family members living together, residential areas, status of spouse, number of chronic illness, and status of limitation in daily life with psychological health status. Conclusion: Therefore, fairness does not occur fire to the medical use between the special corporate pensioners and national pensioners, aggressive of government such as health policy and financial support for the retiree pension policy that reflects the reality intervention would be required.