• The Journal of the Korea Contents Association
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• v.13 no.2
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• pp.235-243
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• 2013

This study analyzes the interaction of variables consisting of the local finance system based on the theory of system thinking regarding how financial decentralization can be understood as the political means for local decentralization and why it is needed. The results gained from this research are as follows: first, variables consisting of the local finance system form interactional relationship in the significant level, and it has been found that rapid growth and rapid decline repeat with five positive feedback loops as the center. Second, strategic points for the validity of local finance decentralization were discovered through causal map modeling. In particular, it has been shown that the virtuous cycle structure declines the local finance system through the constant operation of variables (government subsidies, taxation for real estate transactions, central government's local finance mediation system, and local government debt, etc.) that deteriorate the vicious cycle structure. Based on this, strategic policy tasks were drawn. It is expected that this study will help the understanding of the local finance system and increase academic width for local finance from the aspects of general knowledge, not the knowledge about local finance decentralization.

• Korean Journal of Social Welfare
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• v.60 no.1
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• pp.159-185
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• 2008

The balance between centralization (power concentrated nationally) and decentralization (power devolved to local government) is a perennial issue in the field of social welfare administration. In the design of social welfare administration, values and assumptions related to decentralization and centralization generally are expressed in choices concerning pluralism versus uniformity, small versus large. In this context, this article tried to find and analyze the problems of financial decentralization of social welfare pursued by No Moo-hyun government. The decentralization of social welfare caused horizontal inequity between local governments, lack of social welfare finance of local government, and impediment of local government finance autonomy.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.529-540
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• 2020

The objective of this research paper is to study the simultaneous relationship between fiscal decentralization, corruption, and income inequality among Vietnamese provinces. We use a balanced panel data set of 63 provinces/cities in Vietnam in the period from 2011 to 2018. The study used 3SLS-GMM (Three Stage Least Squares - Generalized Method of Moments estimator) and GMM-HAC (Generalized Method of Moments - Heteroskedastic and Autocorrelation Consistent estimator). Empirical evidence shows a strong simultaneous relationship: increased corruption will increase regional income disparities, income inequality, and increase fiscal decentralization. In addition, the results also suggest that an increase in per-capita income will reduce the level of corruption, or better control corruption of each province. The degree of increase in income inequality, which reduces fiscal decentralization, is the same for trade liberalization. All demonstrate that there is a simultaneous relationship between fiscal decentralization, corruption, and income inequality. In a region of high public governance quality, fiscal decentralization positively effects its economic growth. This issue will indirectly increase income inequality between provinces within a country. Our findings imply that a country's fiscal decentralization strategy should be linked to improving corruption control and local governance effectiveness, indirectly improving income inequality between localities or regions.

• Korean Journal of Social Welfare Studies
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• v.49 no.3
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• pp.35-60
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• 2018

This paper investigates the effects of fiscal decentralization on public welfare finance, focusing that welfare status experienced a post-industrial society has proposed decentralization as a response. The decentralization includes local government responsibilities and expanded roles under the background of fiscal distress of center governments and new social risks. For the analysis, the first theory is established to find out the effect of fiscal decentralization on social expenditure. Also, the second theory is set up for the relationship between the level of fiscal decentralization and composition of social expenditure. Findings indicate that the level of social expenditure of state would decrease as the level of fiscal decentralization increases. Also, the more the level of fiscal decentralization increases, the more the in-kind benefits among total welfare expenditure increase.

• Journal of the Korean Regional Science Association
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• v.35 no.1
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• pp.33-46
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• 2019

In the previous literature, there have been many attempts to probe the relationship between fiscal decentralization and regional balanced development. Much of the literature on this issue argued that the balanced development could be achieved by deviating power from central government to local government. However, several research has raised concerns about the relationship between the two, showing that decentralization could serve as a factor which could further exacerbate the regional imbalance. In particular, they insisted that most of the local taxes that due to the promotion of fiscal decentralization may be concentrated in the metropolitan area. The aim of this study is to verify the hypothesis that the net effect of decentralization promotion may be different depending on local governments' financial conditions. The empirical analysis of this study showed that local government could expand local taxes of about 18 trillion won if the fiscal decentralization was realized. However it was also be found that fiscal decentralization have shown the decrease in the local taxes.

• Journal of the Korea Society of Computer and Information
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• v.10 no.6 s.38
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• pp.287-298
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• 2005

In this local self-government era, in order to achieve real local decentralization, it is guaranteed to establish self-finances of certain administration level. Nowadays Local equalization scheme is carried out for insuring regional equal development and efficiency and effectiveness of administration and for solving vertical horizontal problem of unequal finance in local government. Local equalization scheme is the system to guarantee the financial source so that all local self-governing organizations can obtain national minimum standard while correcting the unbalance of finance and maldistribution of tax revenue source between regions. This paper presents the directions of improvement so that national subsidy and local tax can contribute to the finance balance of local self-governing organization in the uncertainties of future finance with weak financial ability. Consequently, it is required to operate the system according to balance principle by adjusting the operation form and distribution type such as national subsidy and local tax.

• Journal of the Korea Society of Computer and Information
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• v.26 no.3
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• pp.155-165
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• 2021

The measures to extend local education autonomy are as follows: First, it is necessary to correct the confusion of the legal system of the local education autonomy system. For this, Article 12, Paragraph 2 and 4 of the 「Special Act on Local Autonomy and Decentralization, and Restructuring of Local Administrative Systems」 which state that "The State shall endeavor to consolidate systems for autonomy in education and local government" and "The implementation of autonomy in education and the autonomous police system shall be prescribed separately by Acts" should be deleted. Second, it is necessary to clarify unnecessary legal matters and regulatory measures for unification at the national level and to proactively consider the introduction of the legal trust system, in which education affairs are designated as local governments' own work and the state carries out specific affairs. The decentralization of local education finance is a key factor for the development of local education autonomy, and it requires the transfer of authority and resources to the region, and the enhancement of local autonomy and corresponding responsibility. First, the ratio of special grants must be adjusted further (from 3% to 2%) or the ratio of national policy projects must be lowered. Second, the provision that requires a consultation with a mayor/governor when making a budget covered by transfers from general accounts should be deleted. Third, it is necessary to remove the elements that limit the authority of city and provincial councils. Fourth, it is necessary to integrate the national education tax and the local education tax to create the education autonomy tax (tentative name) for only one independent purpose. Fifth, it is necessary to strengthen the distribution of the total amount of grants and abolish the settlement regulations for the measurement items of standard financial demand. Sixth is the expansion of the participation of stakeholders and experts in the grant distribution process. Seventh, it is necessary to establish a long-term employment system by designating the education finance field as a special field. Eight is the expansion of cooperative governance.

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

• International Journal of Computer Science & Network Security
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• v.22 no.7
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• pp.75-84
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• 2022

The efficiency of the regional fiscal policy implementation is based on the achievement of target criteria in the formation and distribution of own financial resources of local budgets, reducing their deficit and reducing dependence on transfers. It is also relevant to compare the development of financial autonomy of regions in the course of decentralisation of fiscal relations. The study consists in the cluster analysis of the effectiveness of fiscal policy implementation in the context of 24 regions and the capital city of Kyiv (except for temporarily occupied territories) under conditions of fiscal decentralisation. Clustering of the regions of Ukraine by 18 indicators of fiscal policy implementation efficiency was carried out using Ward's minimum variance method and k-means clustering algorithm. As a result, the regions of Ukraine are grouped into 5 homogeneous clusters. For each cluster measures were developed to increase own revenues and minimize dependence on official transfers to increase the level of financial autonomy of the regions. It has been proved that clustering algorithms are an effective tool in assessing the effectiveness of fiscal policy implementation at the regional level and stimulating further expansion of financial decentralisation of regions.

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