재정분권화가 도시정부 재정력격차에 미치는 영향
The Impact of Fiscal Decentralization on Fiscal Capacity Disparities among City Governments
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Abstract
The purpose of this study is to analyze the impact of the degree of fiscal decentralization on fiscal capacity disparities among city governments in Korea. Scholars argue there are four possible benefits from the implementation of fiscal decentralization policies: economic efficiency, cost efficiency, accountability, and resource mobilization. This study deals with only one aspect, that is, resource mobilization. Local governments are better positioned to recognize local revenue sources and pressure from inter-jurisdictional competition may motivate local governments to be attentive to economic development. Because of these reasons, fiscal decentralization increases fiscal capacity of local governments and thus decreases the degree of fiscal capacity disparities among local governments. But some argue fiscal decentralization may increase fiscal capacity disparities especially in newly developed democracy or economy. The question is, in what directions might Korea be heading? Using a variety of time-series regression techniques, this study finds fiscal decentralization serves as a booster on behalf of underdeveloped local governments. Fiscal decentralization may be a very effective means of decreasing fiscal capacity disparities among local jurisdictions.
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