Better service delivery, more satisfied citizens? The mediating effects of local government management capacity in South Korea

Does decentralisation lead to higher citizens' satisfaction with the public services that local governments provide? Despite arguments that decentralisation improves public service delivery, studies have not successfully verified the effects of decentralisation on citizen evaluations of local government services. Given the importance of increased local empowerment in promoting desired public goods, we examine whether the hypothesised advantages of decentralisation on public service delivery still hold when applied to citizens' satisfaction with public services. Specifically, we explore both the direct and indirect impacts of decentralisation on citizens' satisfaction through the mediating impact of the local management capacity in Korea. Based on structural equation modelling, the results indicate that decentralisation has a direct negative impact on public service satisfaction, but its impact is not mediated by local management capacity. Due to Korean citizens' lower expectations regarding decentralisation, citizens' satisfaction is not improved even when local management capacity is increased via higher decentralisation.