Description
Title: Do local fiscal expenditures encourage the expansion of the number of profit-seeking businesses in surrounding regions?
Abstract: Governments and businesses frequently require precise geographic information on profit-seeking enterprises in order to allocate resources and create policies that work. This study uses spatial econometrics to examine the effects of local fiscal spending and environmental regulation on the number of profit-seeking enterprises in Taiwan’s counties and cities. Data from 2001 to 2019 are analyzed. The spatial Durbin model, which has spatial and time fixed effects, was used to examine the direct impact on the number of local profit-seeking enterprises as well as the spillover effect of the number of local profit-seeking enterprises in different geographic locations on neighboring regions, particularly the spatial spillover effect of local fiscal expenditure and labor and environmental regulations. This essay discusses the local government’s decision-making processes in relation to the competition strategy of environmental regulation before presenting the policy implications for the government as a whole.
Keywords: spillover effect; fiscal expenditure; spatial autocorrelation; spatial Durbin model
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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