Local elected administrators’ career characteristics and revenue diversification as a managerial strategy

Local governments have endeavoured to be fiscally better prepared against adverse economic downturns, and revenue diversification (RD) is considered one of such efforts. This study examines how Korean local governments have utilised diversification as a managerial strategy between 2007 and 2010. Focusing on local elected administrators’ (LEAs’) previous career, it reports that local governments with administrators with business experiences diversify revenues more than those with politics-turned administrators. It further finds that the effects of socio-economic and institutional factors are moderated by administrators’ career characteristics. Based on such evidence, theoretical and practical implications are discussed.