[Title Page]
Contents
I. Introduction 9
II. Regional Development Policy: Current Status and Issues 13
1. Assessment of reforms to regional development policy under the Park administration 13
A. Assessment and issues 13
B. Realizing the right to welfare and prosperity using block grants 15
2. Regional development policy and fiscal support 16
A. Characteristics of the regional development policy 16
B. Fiscal support for local government finance 17
C. Characterizing different types of fiscal decentralization resources 20
III. Estimating Fiscal Resources for Regional Development 22
1. Special Account for Regional Development(SARD) 22
2. Estimating fiscal resources for regional development 27
A. Yearly capital expenditure trends 27
B. Capital expenditure trends by region 30
3. Estimating the costs of government-subsidized projects 34
A. Estimating the social overhead capital(SOC) stock by region 34
B. Distribution of SOC stocks by region 38
C. Distribution of GRDP by region 40
4. International context 41
IV. Regional Development Policies Worldwide: Characteristics and Outcomes 44
1. United States 44
2. United Kingdom 51
V. Empirical Analysis of Inter-Regional Migration and Regional Economic Growth 57
1. Causes of migration and their implications for the public fiscal policy 57
2. Empirical analysis of inter-city and inter-province migration 60
A. Analysis models 60
B. Analyzed data 63
C. Characteristics of data and methods of analysis 65
D. Empirical analysis: findings 67
E. Implications 71
3. Regional development policy and regional economic growth 73
A. Data analyzed 73
B. Method of analysis 77
C. Findings 78
VI. Conclusion and Implications 82
1. Estimating the amount and outcomes of fiscal resources for regional development 82
2. Ensuring the efficiency of fiscal spending 84
3. Diversifying financial resources for regional development 85
4. Enhancing local governments' control over regional development 87
5. Enhancing the income-redistributing effect and function of the regional development policy 88
Bibliography 91
〈Table III-1〉 SAMCP Budget Trends 23
〈Table III-2〉 Current Status of Budget Spending from the SAMCP 25
〈Table III-3〉 Pure Statistics Analysis of Different Items of Tax Spending by Local... 28
〈Table III-4〉 Capital Expenditure Trends by City, Province, and Year 31
〈Table III-5〉 Pure Statistics Analysis of Spending by Local Governments: Overview 33
〈Table III-6〉 Capital Stock by Region and Year 39
〈Table III-7〉 Seoul-Gyeonggi vs. Rest: Distribution of the Major Indicators in 1997,... 39
〈Table III-8〉 Regional Shares in Major Indicators, 2012 40
〈Table IV-9〉 RDAs vs. LEPs: Similarities and Differences 54
〈Table V-1〉 Basic Data Underlying Post-Standardization Ratio Variables 66
〈Table V-2〉 Inter-Regional Disparity of the Variables(Gini Coefficients) 66
〈Table V-3〉 Hypotheses and Empirical Analysis Findings 68
〈Table V-4〉 Empirical Analysis of Migration among 16 Metropolitan Cities and... 70
〈Table V-5〉 Population-Weighted Coefficients of Variation by Year 74
〈Table V-6〉 Private Sector vs. Government in Total Capital Formation 76
〈Table V-7〉 GRDP, Local Income and Fiscal Resources for Regional Development,... 79
〈Table V-8〉 Growth Rates of the GRDP and Local Income 80
[Figure II-1] Proportion of Fiscal Support for Local Governments in the GDP... 19
[Figure II-2] Local Revenue Sharing... 21
[Figure II-3] Local Revenue Sharing per... 21
[Figure III-1] Pure Statistics Analysis of the Expenditure of Local Governments... 28
[Figure III-2] Trends in Different Items of Local Government Spending Since 2000 29
[Figure III-3] Total Budget, Current Transfers, and Capital Expenditure of Local... 29
[Figure III-4] Current Transfers vs. Capital Expenditure: Rates of Increase 30
[Figure III-5] Trend in the Shares of Capital Expenditure in the Local Budgets 32
[Figure III-6] Capital Stock and GDP 36
[Figure III-7] Resources for Regional Development and the Changing Share in the... 37
[Figure III-8] SNGs' Capital expenditure as a Percentage of GDP, 2009 42
[Figure III-9] Transferred Fiscal Resources and Capital Expenditure in Major... 43
[Figure V-1] Demographic Movements of Different Age Groups, 2003-2013 58
[Figure V-2] Total Capital Formation and Other Variables 77