• Journal of the Korean Regional Science Association
• /
• v.34 no.1
• /
• pp.19-30
• /
• 2018

Social overhead capital(SOC) is an essential element for society to be developed and operated normally. In spite of the increase in the importance of SOC, It is difficult to present the criteria for the appropriate investment of SOC. and The discussion on making SOC investments of local government is insufficient. If the local autonomy has been guaranteed, local government increases investment in regional public goods that residents prefer. Reflection of such residents preferences is the driving force to bring the efficiency of resource allocation in the decentralization theorem. In this study, the authority and autonomy of local governments are measured through local finance. and the decision-making of local governments for SOC investment is examined in point of decentralization theorem. In the empirical analysis, the elasticities of fiscal resources are estimated for facilities(road, water and sewage, irrigation canal and flood control) that local governments are involved in investment. These decisions made by metropolitan cities and provinces were different. The difference was most evident in the effect of per capita local tax on investment. These results show that metropolitan cities and provinces that have different situation made investment decisions differently. It shows that local governments reflect the preferences of the residents in making an investment. The main implication of this study is as follow. In case the role of local government in social overhead capital investment is increased, the increase in efficiency of resource allocation occurs. and The fiscal resources must be raised by local taxes rather than the financial resources from the central government.

• The Journal of the Korea Contents Association
• /
• v.22 no.7
• /
• pp.126-135
• /
• 2022

Decentralization is a structural characteristic surrounding the allocation of power within an organization and is discussed at the organizational, national and local levels. This study examined the evaluation and decentralization direction of decentralization of public officials to derive problems and development directions of decentralization in Korea. We also derive our decentralization task. The decentralization task is, first, the expansion of autonomy in organization composition. The organization of local governments shall be determined according to the details and amount of local affairs. Second, it is to secure autonomy in personnel management. It is desirable for local governments to handle local gardens and manpower management autonomously rather than central uniform control. However, it is necessary to leave the checks and supervision to the local council, civic groups, and local residents. Third, the expansion of fiscal decentralization. First of all, the tax rate should be determined by ordinance within the scope prescribed by law to expand the autonomous financial authority. Next, it is necessary to expand local finances through the conversion of national taxes to local taxes. Next, it is necessary to expand local income taxes and local consumption taxes. Decentralization requires cooperation between the central and local governments and participation of local residents and stakeholders, breaking away from central unilateral and short-term thinking.

• KDI Journal of Economic Policy
• /
• v.31 no.1
• /
• pp.27-69
• /
• 2009

This paper studies the logic of fiscal constraints and fiscal autonomy in a political agency model with both moral hazard and adverse selection. The electoral process not only disciplines incumbents who may act against the public interest but also opts in politicians who are most likely to act along voters' interests. We characterize perfect Bayesian equilibria under shared tax system and fiscal autonomy with fiscal constraints for local public good provision. It is shown that the local voters' expected welfare under fiscal autonomy is higher than under shared tax system if the same fiscal constraints are applied. In order to examine the effects of party's candidate selection processes on the behavior of local politician and national politician, we extend the model to an environment where local politician can compete for the candidacy of national assembly with incumbent national politician. If local politician wins majority of votes against incumbent national politician, then he can move on to serve as a national politician. Otherwise, his political career will end as a local politician. It is the gist of this primary system portrayed by this setup that local politician and national politician compete to garner more votes. Therefore, primary system as a candidate selection mechanism enhances local residents' welfare compared to top-down candidate selection processes.

• Journal of the Korea Society of Computer and Information
• /
• v.29 no.1
• /
• pp.241-249
• /
• 2024

Using the panel data of 31 regions in China from 2006 to 2021, this paper analyzes the efficiency and influencing factors of the fiscal expenditure on compulsory education in China. Through the analysis found that the efficiency of some economically developed regional is lower, but the efficiency of economically backward regional is higher. In order to further analyze the influencing factors of the efficiency of fiscal expenditures on compulsory education, using Tobit model is analyzed. It is found that regional per capita GDP and fiscal self-sufficiency rate have a negative impact on the efficiency of fiscal expenditure on compulsory education. Age structure, percentage of fiscal expenditure on compulsory education and level of teachers have a positive impact on the efficiency of fiscal expenditure on compulsory education. Fiscal decentralization has no significant effect on the efficiency of fiscal expenditure on compulsory education.

• The Journal of the Korea Contents Association
• /
• v.8 no.12
• /
• pp.275-282
• /
• 2008

We are facing that we promptly meet the needs of the times which demand a local decentralization. We must consider, above all, the relations between central government and local government to carry out local decentralization or devolution successfully. In this respect, it is needed to enter into a relationship of intergovernmental function allocation. On this basis of this regard, we have to come up with right intergovernmental financial relations. Given this fact, this study will produce intergovernmental relation model, and then analyze our intergovernmental financial relation positively based on three criteria, such as intergovernmental power relations, role distribution between central government and local government, and the allocation of tax resources. Analysis shows that our intergovernmental financial relation belongs to a management.decentralization model generally.

• Korean Journal of Social Welfare
• /
• v.61 no.2
• /
• pp.61-84
• /
• 2009

There has been a continuous debate on decentralization of welfare. The proponents of decentralization argue that it will enhance the autonomy of local governments and the efficiency in the provision of service. However, the opponents argue that it will lead to the welfare reduction and the increased inequality among localities. This study attempts to deal with the question, focusing on the evaluation of decentralization reform of Roh Government. The main results are as follows: After the decentralization, local governments has undergone hardships in financing the welfare service, while there is no clear evidence that the local autonomy has enhanced. In respect of fiscal role-sharing, local duties has significantly increased because of the insufficient grants-in-aid for decentralization and inappropriate formula in assessing the grants. In respect of functional role-sharing, the decreased role of central government made it difficult for local governments to provide enough residential institution for the elderly and the disabled. To improve the decentralization reform, deliberate reclassification is needed to decide which item should be transferred to localities. Regarding the characteristic of the projects, social services could be transferred in the long run, while central government should take more responsibilities for the income guarantee and protection for the disadvantaged.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.7
• /
• pp.489-495
• /
• 2020

Income inequality is a problem that is not only faced by developing countries such as Indonesia, but also developed countries. The difference lies in the proportion of an inequality that occurs and the solution to the level of difficulty experienced. Thus, this study aims to empirically analyze the unequal distribution of population income in Java island, Indonesia, by including the human development index, open unemployment rate, foreign investment, and the degree of fiscal decentralization. The research model used in this study was multiple linear regression to analyze the panel data with a fixed-effect model approach. The results of the study showed that human development index, open unemployment rate, and the degree of fiscal decentralization had a positive and significant effect on income inequality in Java island. Meanwhile, foreign investment had a negative and insignificant effect on income inequality in Java. It is because the value of the investment is more invested in the capital-intensive sector. The government is expected to be more selective in accepting foreign investments that enter the country, especially in Java, and it should be labor-intensive investments. In addition, the government has to equalize locations for foreign investment without reducing good cooperation with these foreign investors.

• Korean Journal of Social Welfare Studies
• /
• v.40 no.3
• /
• pp.99-124
• /
• 2009

This study investigates the problems of welfare decentralization reform implemented by Roh Mu-Hyun Administration and examines a policy direction for improving the decentralization. The reform has caused various problems. Local governments have suffered from heavy financial burden. Some social services, devolved into local governments, have not adequately provided as before. In addition, fiscal disparity among localities has increased. To deal with these problems, experts have proposed several plans, such as restoring the devolved programs to national subsidy programs, inventing a new social welfare grant, or introducing block grants. This study suggests that some of the devolved welfare programs should be restored to the national subsidies, since they cannot be maintained properly by local governments. Also, we need to adjust financial responsibilities between the central and local government in the national subsidy programs. Introducing block grant can be one satisfying solution to enhance local autonomy while maintaining the financial responsibility of central government. In some national subsidy programs, the financial contribution by the central government should be increased to alleviate financial burden of local governments.

• The Journal of the Korea Contents Association
• /
• v.14 no.10
• /
• pp.112-123
• /
• 2014

This Study aims to establish better sound fiscal plan by investigating perception of local government officials. Local government fiscal consolidation is affected by a combination of factors, including social, economic, demographic, political financial health of local governments. We derived the financial situation of the government-related indicators, financial health-related indicators, the indicators to improve the financial health on the basis of this study are an existing discussion. To ensure the financial soundness of the Cheonan, it is necessary to increase the efficiency of financial management including financial monitoring and control devices provided the locals, investment screening analysis system to enable it. In addition, fiscal controls should be strengthened in order to effectively autonomous government debt management. You must cuts expense of local government to prepare for expansion of local government finance, it is necessary to realize that the fee rates. It should be made through a blend of autonomy and control in the central government, network of local government and the development of local financial operations. You should also to be distributed to the residents welfare and community development funds are invested substantially to establish a systematic planning, resource allocation, evaluation, and reflux system.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.593-604
• /
• 2020

This study analyzes human development convergence and the impact of funds transfer to the regions using σ and β-convergence analysis method. Observations were made in all Indonesia's provinces in the period 2010-2019. The coefficient of variation calculation shows a dispersion in the inequality of human development, which means that convergence occurred. This is also documented by the clustering analysis results developed in the study. The results are in line with the hypothesis of neoclassical theory, which shows the tendency for provinces with lower human development levels to grow relatively faster. The dynamic panel data approach with the GMM model shows that a model built with explanatory variables for transfer of funds to regions may lead to the process of convergence of human development - 2.21% per year or 31 years to cover the half-life of convergence. This is a consequence of the Special Allocation Fund and the Village Fund, which positively impact the convergence process, and the General Allocation Fund and the Revenue Sharing Fund with negative signs slowing the convergence process. This evidence opens opportunities to review the justification of the weighting component in determining the amount of funds transferred to the region to accelerate the convergence process of human development.