Decentralization and balanced regional development have been top policy priorities for Noh administration. A main question that arose in the process of pursuing these two policies were whether they are consistent policy goals.
According to other countries' experiences and researches on this issue, decentralization can go either way: it can reduce or worsen regional disparities depending on the economic conditions of a country and the way decentralization is implemented.
In this study, the relationship between expenditure assignment and the population concentration around the Seoul capital region is investigated, and it is shown that the weak congestion effect of the public goods provided by local governments makes a big city like Seoul attract migration into it due to the net fiscal benefit created by the economies of scale effects large cities enjoy.
The policy implication of this finding is the following: if the local public services such as education and police are made to be the responsibilities of local governments, as is the case for most OECD countries, the immigration pressure into Seoul capital region can be significantly reduced, and policy objectives of decentralization and balanced regional development can be made more consistent with each other.
- 수도권 인구집중과 재정정책(The effect of expenditure assignment on migration into Seoul capital region)
- 김정훈; 김현아
수도권 인구집중과 재정정책(The effect of expenditure assignment on migration into Seoul capital region)
서울 : 한국조세연구원
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration
Social Development < Population