Analysis On the Determinants of Social Welfare Expenditure of Primary Local Governments in Korea

Abstract

To identify the determinants of social welfare expenditure of primary local governments in Korea, social economical, political administrative, and welfare factors have been examined in this study, utilizing the study subjects of year 2013 budgets of 227 primary local governments in Korea (excluding Sejong Self-Governing City) by area types of si(city), gun and gu(district). Generally, financial independence rate, and rate of youth population showed meaningful positive(+) effects on determination of and social welfare expenditure. Meanwhile, Per-capita local taxes and financial autonomy rate showed negative(-) effects. Political administrative factors didn’t show meaningful effects. The result of study by area types of si, gun, and gu was as follows; per-local taxes and rate of the ruling party showed negative effects in cities, but total population, population density, and national basic livelihood security recipients, and rate of youth population showed positive in gun districts. In gu districts, total population showed positive effects with population density and per-capita local taxes showing negative effects. In conclusion, it is recognized that the level of social welfare expenditure of primary local governments in Korea is the sum of government subsidy and independent source of revenue which is required to obtain subsidy.