Empirical Analysis of Convergence Test for Social Welfare Expenditure in Taiwan and OECD Countries

• Main Authors: Ya-ju Chuang, 莊雅如
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/63661255636272754887

碩士 === 逢甲大學 === 財稅所 === 94 === There are more and more international capital movements, labor force flows and immigration following by the trend of globalization. In the face of such immigration, it is necessary to establish transnational cooperation social security system, which can guarantee transnational labor forces to have jobs and their families receive matching old age social security. Consequently, the trend of making social order by an international organization, such as EU or a global norm rises gradually, which is to develop a consistent society security policy by nations’ cooperation. The purpose of this thesis is to investigate whether the social welfare expenditure of various countries under globalization tends toward consistent, or still different and dependent on its own characteristic of social welfare system. The study analyzes the social welfare expenditure of Taiwan and the OECD 21counties from 1980 to 2001. By using cross-section, time-series and panel data models to examine the nations’ convergence of two indices, which are the ratio of social welfare expenditure to GDP and social welfare net benefit per head. The empirical results of the cross-section, models support that there are absolute and conditional convergence of the social welfare expenditure in Taiwan and the OECD countries, respectively. The panel data regressions also show the same relation, which implies low social welfare expenditure countries will convergence to long-term equilibrium faster than the high expenditure counties. However, the unit root tests show that only a few countries have tendencies to convergence in the long-run. And cointegration tests indicate that only the conservative country of the three different welfare regimes has the convergence tendency. For social welfare development process of Taiwan is generally called the corporatistism, and the empirical result shows that Taiwan tends toward the conservatism country. The Taiwan government can ponder over the direction of the social welfare policy in the future.