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Local Expenditure Distribution and Regional Equity in Korea

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2004, 15(1), pp.151-166
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

MOO SUP SHIN 1

1전북대학교

Accredited

ABSTRACT

This paper examines the regional equity in the distribution of local expenditure in Korea. The degree of regional equity is measured by means of the ratio of the proportion of a region's expenditure to the sum of region's expenditures divided by the proportion of a region's revenue to the sum of region's revenues, the proportion of a region's expenditure to the sum of region's expenditures divided by the proportion of a region's GRP to the sum of region's GRPs, and the proportion of a region's expenditure to the sum of region's expenditures divided by the proportion of a region's population to the sum of region's population, fiscal concentration index and the Khetan-Poddar index. A region's expenditure is defined in terms of the expenditure total, the expenditure total in the general account, and the metropolitan and provincial offices' expenditure in general account, respectively. An expenditure total is measured by the sum of expenditures settled in the General Account, Public corporate Special Account and miscellaneous Special Account of meropolitans, Provinces, cities and Guns in a defined region. The expenditure total in the general is measured by the sum of expenditures settled in the General Account of metropolitan, Provinces, cities and Guns in a defined region. The metropolitan and provincial offices' expenditure in general account is measured by the sum of expenditures settled in the General Account of the metropolises and Provinces in a defined region. The data used is from 1970 to 2000. This paper concludes that the local expenditure has not been equally distributed for the period examined. The results indicate that Seoul and Kyungki regions may have sacrificed their share to finance other regions like Gangwon, Chungchung, and Chulla. [Key Words: 지방세출, 형평성, 지역격차]

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