재정분권이 지방재정효율성에 미치는 영향분석 = The Effect of Fiscal Decentralization on the Efficiency of Local Public Finance

다국어 초록 (Multilingual Abstract)

Currently, local decentralization proceeds through the autonomous local government system in Korea. In particular, fiscal decentralization is important to foster local decentralization. Genuine fiscal decentralization should be required to finance devolution-required authority and responsibility. With the advent of globalization, internalization, and localization, most local governments have been required to find more effective ways to manage problems. Despite this necessity, existing studies have mainly focused on the soundness of local finance and relatively little research has been empirically carried out on the efficiency of local finance. Thus, this dissertation empirically examines the effects of fiscal decentralization on the efficiency of local public finance in Korea. The subject of this study is divided between Si and Gun as local governments, and a time-range (2004, 2006, 2008) cross-sectional analysis is conducted. Through literature study and theoretical review, the extent of fiscal decentralization, the independent variable, was divided into two parts, revenue and expenditure. Financial efficiency drew relative efficiency scores using DEA measurement. This research used Tobit regression. The results were as follows. Fiscal decentralization in expenditure didn`t affect fiscal efficiency and was not proved to be statically significant. A ratio of local taxes as fiscal decentralization in revenue affected fiscal efficiency in the positive direction and was proved to be statically significant. On the contrary, a ratio of a local grant tax negatively affected fiscal efficiency but was proved to be statically insignificant. In short, results of this analysis indicate that local governments in Korea do not have sufficient fiscal autonomy. It is essential for local governments to expand independent resources that could allow them to improve local fiscal efficiency from a sense of responsibility.