Position and Validation of Local Finance Decentralization : Focusing on Dynamics of System Thinking
지방재정분권화의 차원과 타당성 : 시스템사고의 동태적 역학관계를 중심으로

Ho-Taek Choi, Seok-Hwan Jung
2013 The Journal of the Korea Contents Association  
This study analyzes the interaction of variables consisting of the local finance system based on the theory of system thinking regarding how financial decentralization can be understood as the political means for local decentralization and why it is needed. The results gained from this research are as follows: first, variables consisting of the local finance system form interactional relationship in the significant level, and it has been found that rapid growth and rapid decline repeat with
more » ... ine repeat with five positive feedback loops as the center. Second, strategic points for the validity of local finance decentralization were discovered through causal map modeling. In particular, it has been shown that the virtuous cycle structure declines the local finance system through the constant operation of variables (government subsidies, taxation for real estate transactions, central government's local finance mediation system, and local government debt, etc.) that deteriorate the vicious cycle structure. Based on this, strategic policy tasks were drawn. It is expected that this study will help the understanding of the local finance system and increase academic width for local finance from the aspects of general knowledge, not the knowledge about local finance decentralization. ■ keyword :|Local Decentralization|Local Finance Decentralization |System Thinking|
doi:10.5392/jkca.2013.13.02.235 fatcat:qvffnybyr5aebo76q3zqo5lr6a