Volume 18, Number 2, December 2023
| The Spatial Spillover Effects of Fiscal Expenditures and Employment Structures on Disposable Personal Income: Evidence from Taiwan
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Abstract
With the main purpose of exploring the determinants (including fiscal expenditure and employment structure) influencing average disposable personal incomes in counties and cities, this study uses panel data of various regions in Taiwan from 2000 to 2020 for spatial econometric model analysis. First, global spatial autocorrelation and local spatial autocorrelation are used to analyze the overall spatial agglomeration degree of average disposable personal incomes in counties and cities and the agglomeration of specific areas. The results of the spatial Durbin model analysis show average disposable personal incomes in counties and cities are influenced by local general government expenditures, expenditures on education, science, and culture, and the proportion of employees with a college education or above. In terms of spatial spillover effects, average disposable personal incomes in counties and cities are influenced by educational, scientific, and cultural expenditures, as well as the proportion of employees with a college education or above in neighboring counties and cities. The results can serve as a reference for the central or local governments to make policies .
Keywords: Fiscal Expenditure, Employment Structure, Disposable Personal Income, Spatial Autocorrelation, Spatial Durbin Model
JEL Classification: D31, H72, J1