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http://dx.doi.org/10.5392/JKCA.2019.19.07.559

On the Effects of Social Welfare Expenditure to Economic Growth: Comparative Analysis between Korea and Northern European Countries  

Rhee, Hyun-Jae (청주대학교 경제학과)
Publication Information
The Journal of the Korea Contents Association / v.19, no.7, 2019 , pp. 559-573 More about this Journal
Abstract
The aim of this study is to investigate how social welfare expenditure affects to economic growth in Northern European countries, and such implication might be compared with Korean episode. ARDL cointegration model is employed for emplrical analysis. The model is usefully utilized to analyze short-run and long-run relationships of the variables in general. The result suggests that private welfare expenditure is effective in Korea and Finland even though the magnitude of effectiveness is quite a small scale. On the other hand, public welfare expenditure is effective in Denmark and Norway. However, none of social welfare expenditures affects in economic growth in Sweden. And, therefore, it could be concluded that although social welfare expenditures contribute to improve income inequality, these hardly support income-led growth strategy.
Keywords
ARDL; Income-led Growth; Social Welfare Expenditure; Unit Root Test;
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Times Cited By KSCI : 2  (Citation Analysis)
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