Strategic Government Spending in Emergent Democracies: Evidence from South Korea and Taiwan

37 Pages Posted: 4 Sep 2009

Date Written: 2009

Abstract

How is government spending used strategically in the emergent Asian democracies of South Korea and Taiwan? As nations generally considered to have weathered democratization, a study of government spending in South Korea and Taiwan is instructive on how allocations may be used strategically without undermining democratization process. This paper evaluates government spending for South Korea and Taiwan and compares pre- and post-democratization patterns. Three interesting results point to the value of longitudinal analyses of individual nations to frame expectations on spending and underpin robust findings: First, defense spending increases in election years in both nations, but not social welfare spending. Second, democratization does not exert an effect independent of elections and legislative fragmentation. Third, government spending is a viable resource for party building; however, this spending has to be targeted at building the nation’s or party’s strengths rather than aimed at divisive politics. While some of the results appear contrary to the literature, they are consistent with the governing party’s efforts to broaden electoral support in emergent democracies.

Suggested Citation

Yap, O. Fiona, Strategic Government Spending in Emergent Democracies: Evidence from South Korea and Taiwan (2009). APSA 2009 Toronto Meeting Paper, Available at SSRN: https://ssrn.com/abstract=1452211

O. Fiona Yap (Contact Author)

The University of Adelaide ( email )

Adelaide, 5005
Australia

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