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  • P-ISSN 1738-656X

KDI 정책연구. Vol. 26, No. 2, December 2004, pp. 105-141

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A Study on the Fiscal Equity of Local Share Tax System in Korea

Yong-seong Kim

Author & Article History

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The success of fiscal decentralization depends on an effective intergovernmental transfer system. This paper focuses on the Local Share Tax(LST), the primary intergovernmental fiscal transfer in Korea. The LST, by law, aims to mitigate horizontal fiscal imbalance among the local governments. As an attempt to test the fiscal equity of the LST empirically, net fiscal benefits of each county are calculated based on a simple model. While the LST contributes to horizontal fiscal measured traditional inequality indices, a geographical pattern of net fiscal benefits is observed. From these findings, the role of LST on fiscal equity needs to be carefully re-examined.


지방교부세, 재정형평화

JEL Code

C21, D63, H24

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