재정분권이 경제성장에 미치는 영향: 생산효율성의 매개효과에 대한 고려 = The Effect of Fiscal Decentralization on Economic Growth in Korea: Focused on production efficiency

다국어 초록 (Multilingual Abstract)

This study raises the question of whether fiscal decentralization helps increase efficiency related to public service provision of local government and investigates how it has affected economic growth when considering production efficiency. Analysis shows that fiscal decentralization has had a positive effect on economic growth directly, and the impact of both revenue and expenditure decentralization is positive on production efficiency, but the effect of expenditure decentralization is smaller than that of revenue decentralization owing to soft budget constraints with local subsidies, and the effect of fiscal decentralization on economic growth can change according to the parameter of production efficiency. In conclusion, for economic growth and social welfare, it is more desirable for local government to take on this role than the federal government. It is also necessary to plan and locate fiscal resources from independent revenue sources, such as local taxes, rather than intergovernmental transfers.