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Title: |
Industrialization and Government Expenditures: The Case of South Korea |
| Author: |
Abizadeh, Sohrab; Yousefi, Mahmood |
| Author
Affiliation: |
U Winnipeg; U
Northern IA |
| Source: |
International Economic Journal, Spring 1996, v. 10, no. 1, pp. 83-94 |
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Publication Date: |
Spring 1996 |
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Abstract: |
South Korea has been transformed from a
nation of war-torn poverty to an industrial giant in one generation.
Many attribute this to the role of government and believe that the size
of government spending increases with industrialization. This paper,
using time-series data for the 1970-1990 period, empirically tested the
impact of industrialization on government spending in Korea. Our results
suggest that the two major determinants of public spending are private
sector's income (output) and the overall state of employment. Further,
our results show that the income elasticity of demand for public goods
is greater than unity, both in the short run and long run. |
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