KAIST analyzes policy effects compared to Incheon, which did not pay
Comparison of sales growth trends for small business owners in Gyeonggi and Incheon
[KAIST 제공. 재판매 및 DB 금지]
(Daejeon = Yonhap News) Reporter Park Joo-young = It was analyzed that the disaster relief funds provided only to local small businesses to support small business owners during the COVID-19 pandemic were effective as a policy.
Professor Jihee Kim’s team at the Department of Technology Management at the Korea Advanced Institute of Science and Technology (KAIST) Business School announced on the 16th that they analyzed the impact of COVID-19 disaster relief funds on small business sales and found that sales increased more than the budget paid.
The research team compared the increase in small business sales compared to the previous year in Gyeonggi-do, which paid disaster relief funds to all residents for 22 weeks from April 2020, and Incheon City, which did not pay disaster relief funds at the local government level during the same period.
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Before the subsidy was paid, the sales growth rate of small business owners in the two regions showed a similar trend, but in the first five weeks after the payment, sales in the Gyeonggi region increased by 4.5% compared to Incheon.
After the disaster relief fund ended, the total sales of small business owners in the Gyeonggi region increased by 1.09 times the budget paid.
The economic revitalization effect of disaster relief funds was the same regardless of regional income levels or differences in purchasing power within Gyeonggi-do.
KAIST research team analyzed the effects of COVID-19 disaster relief funds
From the left, Professor Jihee Kim and Dr. Susang Lee. [KAIST 제공. 재판매 및 DB 금지]
As the deadline for spending disaster relief funds approached, the impact showed a gradual decline, but overall, the research team explained that the disaster relief policy can be evaluated as contributing to revitalizing the local economy.
The research team came to this conclusion by analyzing transaction data from over 40,000 small business establishments in the Gyeonggi and Incheon regions based on Korea Credit Data’s 2020 weekly small business sales information by city, county, and district.
Professor Jihee Kim said, “Unlike the United States and Singapore, which paid COVID-19 disaster relief funds in cash to citizens, Korea achieved the effect of revitalizing the local economy by allowing only small business owners to use disaster relief funds.” He added, “Through this study, small business owners in disaster situations were able to use disaster relief funds.” “It will contribute to deriving optimal policy measures to support the and regional economies,” he said.
The results of this study were published in the online edition of the international academic journal ‘Economic Analysis and Policy’ on August 24.
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2024/10/16 09:14 Sent
