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pp.25-36
The purpose of this study is to construct a quantitative evaluation method that can analyze the policy effectiveness with the construction of a implicit composite index incorporating spatial econometrics models. In order to propose a methodological framework for the program evaluation, this study conducts an empirical analysis with the application of the Comprehensive Rural Village Development Project (CRVDP) which explicitly claims to achieve comprehensive goal of community development. The present study pays particular attention to quantifying the composite evaluation index and drawing net effect through the application of a series of spatial econometrics models. The spatial unit of the analysis is drawn at Eup-Myeon level in rural areas in Korea, and the time horizon is in between 2005 and 2010. We utilize the Korean Agricultural Census data in 2005 and 2010. Three steps of methodological processes are needed to satisfy the objective of the present study. First, we apply factor analysis to construct the composite index that represents comprehensive settlement environment in rural area. The index should be matched with the main objective of the CRVDP. Second, we apply the derived index to a series of spatial econometrics model as dependent variable. Lastly, utilizing the estimated coefficients of the econometrics models, we apply decomposition technique to estimate CRVDP’s net effect from both cross-sectional and longitudinal perspectives. We find that the results of the decomposition analysis by the execution of the CRVDP are positively associated with the explicit object of the project.
