earticle

영어

This study conducted a panel analysis to examine the influence that regional finance had on the growth of Korea’s regional economy since the Asian financial crisis in 1997. The findings are as follows. First, in Korea, a region’s total factor productivity is not affected by the number of branches. Education level and government expenditure per worker by region showed a negative (-) relationship with total factor productivity. Second, both general banks and special banks contributed to the scale and scope of the regional manufacturing industry. In addition, government expenditure per worker and the size of loans made by branches of special banks showed a negative relationship. That is, the financial channel was not efficiently managed, which hindered investment in regional companies and minimized their productivity.