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Evaluation of the political characteristics of the chiefs of local governments’ influence on the aid allocation: Focusing on the Social Overhead Capital (SOC) Categorical-Grant in Korea

초록/요약

Categorical-Grant among transfer from the central government of South Korea is likely to involve political in nature because it is not legalized nor changed annually due to budget limitation and policy direction of the central government. To further explore this topic, this paper aims to establish the empirical basis on the effect of distribution of transfer from the central government by political characteristics of the chiefs of local governments’ influence on the aid allocation. In addition, one particular emphasis is placed on the allocation of categorical grant Social Overhead Capital (SOC) sector by analyzing the data collected from 2009 to 2015 across 226 cities, counties, and districts in the whole country. The results of Panel GLS analysis under control of heteroscedasticity and autocorrelation show that the local government head politically characterized as the ruling party have positive effect on allocation of categorical-grant.

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