Intergovernmental fiscal relationship and transfers in Korea

It was not until June 1995 that residents directly elected their chief exec utives and councilors in Korea. However, ever now Korea has a single law sy stem regulated by the central government. With this as background, this pap er focuses on intergovernmental fiscal relationship, and investigates effec ts of transfers on, economic development. It could be claimed that transfer s play an important role in economic development through local capital expe nditure. The paper shows this on the basis of correlations between industri al structures and main items of local governments.