The Korean Journal of Economic Studies
The Effects of Fiscal Decentralization on Regional Disparities
Jae Myung Han (Korea Institute of Local Finance)Year 2020Vol. 68No. 2
The purpose of this study is to investigate the effects of fiscaldecentralization on regional disparities and to analyze the role of various fiscalequlization systems in this process. For this purpose, panel analysis wasconducted on the impact of various decentralization indicators on the regionaldisparity of GRI per capita and the role of various fiscal equlization systems.The increase in the ratio of local tax or the ratio of self-revenue to localrevenue, which is an indicator of fiscal decentralization, can indirectlycontribute to narrowing regional disparities in combination with the localconsumption tax equlization system. This suggests that fiscal decentralization,if harmonized with current fisca