Faculty Publications

Industrialization And Government Expenditures: The Case Of South Korea

Document Type

Article

Journal/Book/Conference Title

International Economic Journal

Volume

10

Issue

1

First Page

83

Last Page

94

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. [H1]. © 1996, Taylor & Francis Group, LLC.

Department

Department of Economics

Original Publication Date

1-1-1996

DOI of published version

10.1080/10168739600000029

Link to Full Text

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