논문

This study analyzed the effect of the coordination system of local public finance
on the operation of local public finance by utilizing a pooled regression analysis
(TSCSREG: time series cross section regression analysis) using data collected
during a 7-year period (1996-2002).

To accomplish the objective, the figures for the variables of the coordination
system of local public finance--Local Allocation Tax, Local Transfer Fund,
National Subsidy and for the four variables on the aspects of self-reliance and
soundness among different operational types of local public finance--the ratio of
non-earmarked fund source, the ratio of own revenues, the ratio of investment,
ratio of systematic operation of local public finance were collected and analyzed.
The results of the new analyses are as follows: (1) The ratio of non-earmarked
financial source is likely affected negatively by the Local Allocation Tax of the
coordination system of local public finance, while the Local Transfer Fund and
the National Subsidy seem to have a positive effect; (2) In terms of the effect of
the coordination system of local public finance on the ratio of own revenues, the
results showed that the Local Allocation Tax and the National Subsidy affected
negatively, whereas the Local Transfer Fund had a positive effect; (3) The effect
of the coordination system of local public finance on the investment ratio of local
public finance showed that the Local Allocation Tax, the Local Transfer Fund,
and the National Subsidy all had positive effects; (4) Its effect on the ratio of
systematic operation of local public finance indicated a positive sign with the
Local Transfer Fund, a negative sign with the Local Allocation Tax and the
National Subsidy.