Whether There Is a Competition between the Interprovincial Governments on Fiscal Expenditure —From the Detection of Spatial Correlation

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DOI: 10.4236/ojbm.2018.62033    608 Downloads   1,080 Views  
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ABSTRACT

The fiscal decentralization gives the local government economic participation status. Is there a spatial spillover effect in the process of local government financial expenditure? This paper introduces the spatial econometric model, and applies the 2005-2016 data to test the spatial correlation of the whole country by calculating the Moran’s I index and the Geary index C. At the same time, we use the local Moran’s index to detect the degree of agglomeration between regions. The results show that there is a significant spatial spillover effect between regions. There are policy imitation behaviors in the region and adjacent areas, and there is a high value and high value agglomeration among regions, as well as a trend of low value and low value agglomeration.

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Wang, Y. (2018) Whether There Is a Competition between the Interprovincial Governments on Fiscal Expenditure —From the Detection of Spatial Correlation. Open Journal of Business and Management, 6, 454-461. doi: 10.4236/ojbm.2018.62033.

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