* SUMMARY

Financing Local Development through Intergovernmental Transfers
- The case of Korea -

The issue of financing local development through intergovernmental transfers contains several preconditions which must be resolved before getting into the further discussions of the schemes and institutional arrangements of intergovernmental transfers. First theoretical question is to whether intergovernmental transfers as an instrument of fiscal decentralization promote the local economic development or not. Another question is on the utility of intergovernmental transfers in both equalization and economic growth. These two questions would be examined in this article.