• Title/Summary/Keyword: Local government expenditures

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Association Between Local Government Social Expenditures and Mortality Levels in Korea

  • Ko, Hansoo;Kim, Jinseob;Kim, Donggil;Kim, Saerom;Park, Yukyung;Kim, Chang-Yup
    • Journal of Preventive Medicine and Public Health
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    • v.46 no.1
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    • pp.1-9
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    • 2013
  • Objectives: We examined the association between social expenditures of the local government and the mortality level in Korea, 2004 to 2010. Methods: We used social expenditure data of 230 local governments during 2004 to 2010 from the Social Expenditure Database prepared by the Korean Institute for Health and Social Affairs. Fixed effect panel data regression analysis was adopted to look for associations between social expenditures and age-standardized mortality and the premature death index. Results: Social expenditures of local governments per capita was not significantly associated with standardized mortality but was associated with the premature death index (decline of 1.0 [for males] and 0.5 [for females] for each expenditure of 100 000 Korean won, i.e., approximately 100 US dollar). As an index of the voluntary effort of local governments, the self-managed project ratio was associated with a decline in the standardized mortality in females (decline of 0.4 for each increase of 1%). The share of health care was not significant. Conclusions: There were associations between social expenditures of the local government and the mortality level in Korea. In particular, social expenditures per capita were significantly associated with a decline in premature death. However, the voluntary efforts of local governments were not significantly related to the decline in premature death.

Re-examining the Effects of Partisan Politics on Welfare Expenditures in Korean Local Governments (지방정부 복지지출에 미치는 정치요인의 영향 재고찰)

  • Kim, Beomsoo;Lee, Byung-Jae
    • Korean Journal of Legislative Studies
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    • v.24 no.1
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    • pp.203-239
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    • 2018
  • Responsible government can be achieved when social cleavages are institutionalized via political competition and social interests are represented by responsible parties. This paper aims to investigate the factors that determine welfare expenditures in Korean local governments by analyzing partisanship and political competition factors simultaneously in the same model. This paper also argues that the relationship between the political factors and welfare expenditures in local governments is not linearly increasing as the previous studies claim. This paper examines the welfare expenditures in Korean municipality-level local governments in 2007, 2011, and 2015. The primary findings are: 1) the partisanship of the head of local government and the party distribution of local assembly members have meaningful effect on the welfare expenditures and the divided governments do not show significantly different effect on welfare expenditures from unified governments, which is contrary to the extant studies, 2) the partisan effects of the head and the local assembly vary according to the levels of municipalities (Gu, Gun, and city), mainly due to the difference in types of revenues and expenditures and 3) the relationship between seats shares of progressive parties in local assembly and the welfare expenditure is not linearly increasing one. The effect of seats shares of progressive parties dramatically begins to increase when the seats shares are in 40%-60%. With these findings, this paper highlights the conservative nature of head of local governments with Hannara party (or Saenuri Party), the conservative leaning of independent candidates, and the conservative orientation of local assemblies in the regions dominated by Democratic Party (and its equivalents).

An Analysis on Convergence of Local Public Expenditures in Korea (우리나라 지방재정지출의 수렴 분석)

  • Kim, Sung Tai
    • Journal of Digital Convergence
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    • v.12 no.7
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    • pp.65-76
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    • 2014
  • 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.

An Analysis of Urban Migration and Local Government Finance (도시의 인구이동과 지방재정에 관한 연구)

  • 김헌민
    • Korea journal of population studies
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    • v.14 no.2
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    • pp.1-17
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    • 1991
  • While various fiscal measures have been used to influence regional capital inflow or industrial location, the effect of fiscal variables on labor mobility has been little understood. Understanding the relationship between the composition of local public and urban migration would enhance the city govenment's ability to pursue an appropriate population policy. In order to examine the potential for local public finance to be utilized as a policy tool in directing urban population growth, this paper analyzes the impact of local government financial structure on urban migration. In examining the data on local government finance and the changes in population of Korean cities during the last ten years, it was found that cities with high per capita expenditure in regional development have experienced high population growth rates. In this study migration equations were constructed using various fiscal variables such as the proportion of special account expenditures which are mostly spent for local development purposes, per capita regional development expenditure, degree of local financial independence and per capita net fiscal benefit, along with other explanatory variables. The results of regression analysis showed that city government's regional development expenditure variables have a positive effect on urban net migration and a negative effect on outmigration. Fiscal independence and per capita net fiscal benefit had mixed effects on in and out migration variables, implying that local tax burden does not consistently deter inmigration or induce outmigration. Based on the results of this study some important policy implications can be found regarding local government's fiscal policies. Those cities seeking to attract higher population inflow should make a greater effort in appropriating local expenditures for regional development purposes such as infrastructure, housing, and transportation. city governments should not be too concerned about high local tax burden or necessarily seek to enhance financial independence for these factors do not exert a clear influence on urban population growth or labor supply.

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A Dynamic Panel Approach to Examining the Effects of Local Fiscal Expenditures on Water Quality (동태적 패널접근을 활용한 지방 재정지출의 수질개선 효과분석)

  • Hyonyong Kang;Dong Hee Suh
    • Environmental and Resource Economics Review
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    • v.33 no.2
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    • pp.159-178
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    • 2024
  • This study aims to assess the direct and indirect impacts of local fiscal expenditures on water quality. Panel data spanning from 2010 to 2018 for 173 cities and districts in Korea are assembled, and a two-stage dynamic panel model is utilized for our estimation. The empirical findings reveal several key insights. Firstly, local fiscal expenditures on water quality are effective in ameliorating both Biological Oxygen Demand (BOD) and Total Phosphorus (T-P). Notably, the direct impact on T-P surpasses that on BOD in the short and long run. Secondly, expenditures dedicated to water quality improvement demonstrate a positive effect on local economic growth, and an inverted U-shaped relationship is observed between BOD and local economic growth. Due to the positive linkage, the indirect effect on BOD suggests, on average, a deterioration in water quality during local economic growth. Thirdly, concerning BOD, the direct effect of government expenditure on water quality improvement outweighs the indirect effect, but in the case of T-P, the indirect effect is not significant, and the total effect is solely determined by the direct impact. Despite local fiscal expenditures potentially exacerbating water quality through regional economic growth, the study finds that the direct enhancement of water quality remains a more substantial factor in the short and long run.

The Use of Optimal Control Techniques to Design Regional Policies: With Special Reference to the Evaluation of Regional Economic Polices (최적제어기법의 지역정책에의 적용에 관한 연구 : 지역경제정책의 평가를 중심으로)

  • 강동희
    • Journal of the Korean Regional Science Association
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    • v.15 no.1
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    • pp.1-22
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    • 1999
  • It is widely known that optimal control techniques are useful to measure the performance of macroeconomic policy. This paper examines how the method could be applies them to the evaluation of the public investment expenditures conducted by the local government of Choongbook Province in Korea. The numerical example illustrates the usefulness of the methods for the evaluation of the regional economic policies suggesting the main findings as follows: (1) If the local government of Choongbook Province had increased the public investment expenditures allowing the budget deficits for the first three to four years during the period between 1985 and 1990, its GRDP would have early risen to the ratio of more than three percent of Korea's total GDP. (2) The additonal welfare losses incurred by not following the optimal policy were 0.191 in 1986, 0.607 in 1987, 1.585 in 1988, and 0.132 in 1989, indicating that the public investment policy proves to be the best in 1989 and the worst in 1988.

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Optimal Distribution of Public Health Administration between Local and Central Government (중앙-지방 정부간 보건행정기능 및 재원의 효율적 배분방안)

  • 양봉민;김진현
    • Health Policy and Management
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    • v.2 no.2
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    • pp.33-56
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    • 1992
  • The objectives of this research are (i) to review the functional and financial distribution of public health adminstration between central and local governments, (ii) to find out, based on economic criteria, optimal distribution required to fullfil local need for public health, and finally, (iii) to suggest policy implications in health area in face of the newly arising local autonomy system in Korea. Judging from data on government expenditures and tax revenues, public health administration in Korea is highly concentrated into central government, both functionlally and financially. High dependency of public health on central government has often been critisized that local residents can not participate in the decision making process for local health problems. This study, however, shows that localization of public health administration does not necessarily result in efficient and equitable allocation of resource to satisfy local demand for public health. From this point of view, two eccnomic criteria are suggested, i.e. external effect and economies of scle, as distributive criteria of roles in public health administration between local and central government. In addition, superiority of central concentration of public health administration to localization is emphasized in that public health in a wide sense contains the nature of public good and is part of compulsory socil security system. As a consequence, planned intervention by government is desirable.

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The Effect of Local Universities on the Local Economy : Based on Industry Linkage Analysis

  • Sung Hyun Park;Ki Beom Kim
    • International Journal of Internet, Broadcasting and Communication
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    • v.16 no.1
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    • pp.233-240
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    • 2024
  • We analyzed the effect of local college students' economic activities on the local economy. The analysis method was an industry-related analysis based on data obtained from a survey. As a result of the analysis, local university students were found to be sensitive to price when consuming due to insufficient living infrastructure around local universities. In addition, as a result of analyzing the impact of local college students' consumption expenditures on the local economy, especially local income, using a regional industry correlation table, the total income generated was KRW 130.6 billion (direct and indirect income effects KRW 90.9 billion, induced income effects KRW 39.6 billion), and the number of people induced to be employed was KRW 130.6 billion. It was estimated that there were 2,145 people per year. We examined the effect of local college students' economic activities on the local economy through quantitative analysis. This is a contribution point of the study as evidence supporting the maintenance and necessity of local universities, and suggests that the government and local governments should take active interest and efforts in fostering local universities.

The Public-Private Partnerships and the Fiscal Soundness of Local Governments in Korea

  • LEE, HOJUN
    • KDI Journal of Economic Policy
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    • v.39 no.1
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    • pp.41-82
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    • 2017
  • This paper studies the risks associated with local finance in Korea by identifying the financial status of each local government, including the financial burdens of PPP projects, and examined governmental future burdens related to PPP projects. We reviewed all fiscal burdens associated with projects, such as, for BTL (Build-Transfer-Lease) types of projects, facility lease and operating expenses, and, for the BTO (Build-Transfer-Operate) types of projects, construction subsidies that are paid at the construction stage, MRG (Minimum Revenue Guarantee) payments and the government's share of payment. Furthermore, we compared the annual expenditures of local governments on PPP projects against their annual budgets and checked if the 2% ceiling rule could be applied.

The Impact of Local Government's Expenditure on Air Quality in Korea (지방정부의 대기환경예산 지출이 대기오염 정도에 미치는 영향)

  • Kwon, Hye Yeon;Jung, Chang Hoon;Kim, Yong Pyo
    • Journal of Korean Society for Atmospheric Environment
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    • v.32 no.6
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    • pp.583-592
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    • 2016
  • In this study, we attempt to provide empirical evidence for the effect of the expenditure of the local governments on the air quality management. Based on the statistical data, the concentrations of air pollutants including $PM_{10}$, $O_3$, and $NO_2$ were analyzed in accordance with local characteristics of the local governments' environmental expenditure, demographic characteristics, and economic and human resources between 2008 and 2014. The results showed that government spending is estimated to have insignificant impact on air pollutants concentration. All these results are consistently corroborated from the analysis based on different alternative measure of local governments' expenditure (budget composition and measure of expenditure residuals). Subsequently, this study implies that environmental expenditures of local governments have not been effectively enforced to enhance the air quality of the region in Korea.