The impact of the Korean preliminary feasibility study on budgetary decisions

Lee, Sungwon (2014). The impact of the Korean preliminary feasibility study on budgetary decisions. University of Birmingham. Ph.D.

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In 1999, Korea adopted the Preliminary Feasibility Study (PFS) to enhance fiscal efficiency by preventing unsuitable projects from being allocated a budget in the budget selection (BS) process. The PFS uses both economic and non-economic assessment criteria. However, according to data collected since the introduction of the PFS, about 30 per cent of projects not recommended for budget allocation received a budget. This raises questions about the relationship between the PFS and budget allocation. According to previous research, three issues about the effect of the PFS on budgetary decisions caused concern: the effect of PFS results on budgetary decisions, the appropriateness of the current PFS methodology, and the potential non-neutral behaviour of stakeholders taking part in the PFS. To deal with these, the thesis uses three key research questions: What is the impact of PFS results on budgetary decisions? Does the current PFS methodology lead to inappropriate decisions? And, lastly, what are the types of, extent of, and reasons for non-neutral behaviour by stakeholders in the PFS, and how might such behaviour be reduced? The study suggests that PFS results have a positive impact on budgetary decisions. The thesis also examines the appropriateness of the current PFS methodology and provides potential alternatives through both quantitative and qualitative analysis. Lastly, the thesis provides evidence of non-neutral behaviours by stakeholders in the PFS, which are categorized into four types: Promoter, Blocker, Dr. Pangloss, and Cassandra type. After this, this thesis examines the reasons for non-neutral behaviour and suggests possible policy alternatives for reducing non-neutral behaviour.

Type of Work: Thesis (Doctorates > Ph.D.)
Award Type: Doctorates > Ph.D.
College/Faculty: Colleges (2008 onwards) > College of Social Sciences
School or Department: School of Government and Society
Funders: None/not applicable
Subjects: D History General and Old World > DS Asia
H Social Sciences > HG Finance


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