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The local governments(LGs) of the Netherlands have less autonomy over managing and facilitating local economic development(LED) than those of Korea with respect to the centralized structure of local public finance(LPF). However, many different LED-related indices show that the Dutch local economic situation is closer to the condition of regional-specific LED than that of Korea. Given the general recognition that fiscal decentralization is a prerequisite to reflecting the situation of local community which leads to the local-friendly or regional-specific LED, the situations of two countries need to be investigated in depth. Most research on this issue focuses on analyzing the degree of superficial fiscal decentralization and its relations to the situation of LED. However, this research starts from the analysis of the superficial features of two countries, but moves on to the investigation of the local autonomy with respect to the management of LPF, and furthermore to the exploration of the coordinating system of intergovernmental fiscal relations(IFR) especially through examining the role of the association of LGs. The latter is to find out the essential reason of the gap between the general recognition and the reality of the relations between fiscal decentralization and LED of two countries. In conclusion, this research suggests that superficial fiscal decentralization does not play a serious role in supporting the regional-specific LED as much as does a well-developed dialogue channel through which the local situation can be reflected in the management of given structure of LPF and the coordinating process of IFR.
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UCI(KEPA) : I410-ECN-0101-2018-032-001837699