Impact of Local Government Monetary and Fiscal Policies on Output Growth of Firms

  • Changkeun LeeEmail author
  • Euijune Kim
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 25)


This study explores the impacts of the monetary and fiscal policies of local governments on the output growth of firms, using multilevel statistical models. It concludes that short-term loans and bonds have a positive influence on output growth but long-term loans have a negative effect, while the effect of paid-in-capital increases is inconclusive and insignificant. A credit guarantee from the local government has the largest impact on the elasticity values of factor inputs and financing amounts with respect to output, compared to other government expenditure programs.


Monetary and fiscal policies Multilevel statistical models Bank-based and market-based financial systems Local government Financing options 


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Copyright information

© Springer Science+Business Media Singapore 2016

Authors and Affiliations

  1. 1.Research Institute of Advanced MaterialsSeoul National UniversitySeoulKorea
  2. 2.Department of Agricultural Economics and Rural Development and Research Institute of Agricultural and Life ScienceSeoul National UniversitySeoulKorea

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