Browsing by Subject "quangos"

Now showing 1 - 2 of 2
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    Understanding Public Sector Debt: Financial Vicious Circle under the Soft Budget Constraint
    (Springer Nature, 2018) Park, Sanghee
    The article explains why debt of public sector organizations grows beyond the sustainable level by focusing on the principal-agent relationship under the soft budget constraint. Specifically, this article explores the extent to which factors affect the level of public sector debt in the context of quasi-autonomous non-governmental organizations (quangos) in Korea over the past two decades (1993-2012). The findings from the panel data analysis suggest that the level of public sector debt increases as an outcome of the financial vicious circle created by the soft budget constraint: a knock-on effect of the moral hazard of quangos as well as the opportunistic behavior of political principals. Public sector debt is positively associated with agency-specific factors such as the size of quangos as well as the factors related to the political incentives such as policy preferences and electoral considerations. However, macroeconomic factors made little difference to the general pattern of the evidence.
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    What Causes the Death of Public Sector Organizations? Understanding Structural Changes and Continuities in Korean Quangos
    (Taylor & Francis, 2013) Park, Sanghee
    This study explores the determinants of structural changes and continuities of public sector organizations in Korea using longitudinal data. Focusing on the political costs of termination, we examine external and internal factors that are closely linked to the political incentives to terminate quangos. This article primarily addresses the following question: What determines the termination of public sector organizations? The model suggests that survivability of public sector organizations largely depends on external factors such as political, institutional, and social changes. Specifically, quangos are more likely to be terminated during political turnovers and the period when presidential power is maximized. Termination seems easier for politicians when social demands are mature enough to blow away political burdens and cynicism. Although organizations with fewer resources are more vulnerable to external pressures and shocks, none of the quango-specific factors significantly affect the survivability of Korean quangos.