Targeting Public Spending in a New Democracy: Evidence from South Korea

Abstract

Empirical studies of electoral competition and public policy in new democracies have been relatively underdeveloped. This article investigates the election-policy outcome link in a ‘hard case’ setting: South Korea in 1988–97. Contrary to expectations derived from the bureaucratic insulation or fiscal co-ordination argument, this study suggests a systematic impact of electoral competition on levels and distributive patterns of public spending. The analysis finds that levels of government expenditure increased according to the electoral calendar. Also, national subsidies tended to be allocated to ‘swing’ provinces in which electoral contests are competitive. The results of the analysis clearly show that fiscal policies in democratizing Korea are to a significant extent determined by electoral politics.

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