Abstract
This study examined the effect of decentralization on economic growth and, unlike previous studies, it also empirically analyzed how the implementation of local autonomy affects economic growth. Our analysis of government data from 16 metropolitan areas, covering the 1989-2012 period, indicated that decentralization has consistent positive effects on both the real and nominal gross regional domestic product (GRDP) growth rate. These results imply that regional decentralization improves the efficiency of resource allocation in the public sector and thus contributes to economic growth.
| Original language | English |
|---|---|
| Pages (from-to) | 985-999 |
| Number of pages | 15 |
| Journal | Lex Localis |
| Volume | 17 |
| Issue number | 4 |
| DOIs | |
| State | Published - 30 Oct 2019 |
Keywords
- Decentralization
- Economic growth
- Efficiency of resource allocation
- Korea
- Local autonomy
