Cost effectiveness analysis of the governmental financial support program for traditional market remodeling project

Abstract

The sales of the traditional markets have declined sharply since the 2000s. Therefore, the government has employed various measures including diverse policy and economic support programs. However, despite the continuing financial support for modernizing the facilities of the traditional markets, the effectiveness of each support has not been tested. Therefore, it is urgent to establish a clear direction for the support programs. This study analyzed the effectiveness (i.e., increase in sales) of the support for diverse market types in order to run the Traditional Market Financial Support Program efficiently. In order to achieve the study objective, this study collected annual sales data from 66 markets and statistically analyzed the data by market types and facility support type. The results of this study showed that the support increased the sales of markets and the increase in sales was different between support facility types and market characteristics. The results empirically proved the Traditional Market Facility Modernization Program increased the sales of traditional markets. The results of this study will be useful to manage the Traditional Market Facility Modernization Program efficiently.