The Korea Local Administration Review

The purpose of this research was to evaluate the effectiveness of some of the special accounts funds in terms of stimulating balanced national development specifically in regional economic development. The research question was about whether government expenditures for supporting toward balanced development achieved their stated objectives. The analysis was based upon a panel fixed regression model with using data from 2008 to 2016. The analytical evidence indicates that all else held equal, the special accounts funds successfully stimulated regional economic development in the city level of Kyongsang Provinces, South Korea two years after. Also, the positive impact of the expenditures occurred after one year may attributable to accelerated economic development at the township level of Kyongsang Provinces, South Korea. These results are consistent with the commonplace observation that effectiveness of the special accounts funds targeted balanced national development take time. This research suggest that funds in terms of stimulating balanced national development can provide a positive longerterm return vis-a-vis regional economic development.