The Korea Local Administration Review

This study seeks to identifies factors affecting the disparity of fiscal capacityamong 25 districts in Seoul City and find out basic solutions for such disparity.To do this task, this study analyzes empirically the relationship betweeninfluencing factors and fiscal capacity gap utilizing the panel data from 2002 to2012. This study analyzes systematically factors that influence on fiscal gapamong 25 districts, divides such factors into the socio-economic factors,population factors, and physical factors. In addition, this study uses index ofdisparity be called direct one instead of the coefficient of variation, the Giniindex be called indirect outcome.The results are as follows: most factors in current system of fiscaladjustment grants, including the number of old-aged population, basic livelihoodsecurity recipients, workers ratios by industry, and extension road facility havesignificant impacts on fiscal disparities. However, some factors such asapartment ratio, library ratio, and park area significantly affect fiscal disparity.These factors do not belong to the current measurement items of fiscaladjustment grants. Based on this result, we suggest that these factors shouldbe included in that system in order to alleviate the fiscal disparity among 25districts in Seoul.
□ Keywords: fiscal capacity disparity, adjustment grants, measurement unit,index of disparity