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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