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Subject

Analysis for Causality between Local Government Expenditure by Sector and Regional Economic Growth
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지역별 분야별 지방재정지출과 지역경제 성장과의 인과관계 분석

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Type
Academic journal
Author
Lee, Changkeun (서울대학교)
Journal
Korean Association For Local Finance The Korea Journal of Local Public Finance Vol.24 No.3 KCI Accredited Journals
Published
2019.12
Pages
51 - 72 (22page)

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Analysis for Causality between Local Government Expenditure by Sector and Regional Economic Growth
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Abstract· Keywords

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The purpose of this study is to verify the causality between local government expenditure by sector and the regional economic growth. As the analyzed results, the Wagner hypothesis as well as the Keynesian model were mostly established in the causality between local government expenditure by sector and the regional economic growth, except for the causality between the economic development expenditure and the regional economic growth in Seoul Metropolitan regions. Through the verification of the casuality between local government expenditure by sector and the regional economic growth, it was confirmed that the impact of local government expenditure by sector on the regional economic growth differs by region. For example, in Seoul Metropolitan regions the role of social development expenditure was more important among local government expenditure by sector. In other non-Seoul Metropolitan regions, the role of general administration expenditure and economic development expenditure were necessary for the regional economic growth. For the low income regions, the role of social development expenditure was the most important to achieve the regional economic growth in the Keynesian model. However, the regional economic growth led to the increasement of the social development and the economic development expenditures in the Wagner hypothesis.
Ultimately, in the low-income and the other non-Seoul Metropolitan regions where private capital accumulation has been lacking, the regional income growth as well as the social development and general administration expenditures for the regional economic growth were needed. Particularly, the regional income growth would lead to the increased local government revenue, which would induce the economic development expenditure. This is a virtuous cycle of economic feedback covering the Keynesian model and the Wagner hypothesis.

Contents

국문요약
Ⅰ. 서론
Ⅱ. 선행연구
Ⅲ. 분석
Ⅳ. 결론 및 정책적 함의
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UCI(KEPA) : I410-ECN-0101-2020-032-000279216