地方讓與金의 地域經濟 波及效果 分析

An Analysis of the Impact of Block Grants on Regional Economy

In this paper it is attempted to empirically measure the regional economic impact of the block grants for road maintenance which is newly introduced to encourage balanced growth among regions by strengthening the deficient capacity of local public finance. Some important findings suggested by the analysis are that; ⅰ) the new block grants is fairly effective in enhancing the fiscal base of county autonomy while little effective to the other autonomies such as cities and provinces. ⅱ) the block grants is not contributive to reducing the fiscal imbalances among regions since the small and medium cities were excluded from the target regions for its distribution. ⅲ) the total output effect of the grants appears relatively higher in Seoul Metropolitan Area while lower in Choong-Cheong Area. ⅳ) the block grants for road maintenance has relatively strong output effect to the oil & chemical industry, non-metalic industry and real estate & insurance & banking industry.