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The Identification of the Financial Competition of Local Governments in Xia
53 Copyright ? Canadian Research Development Center of Sciences and Cultures
ISSN 1923-841X [Print]
ISSN 1923-8428 [Online]
International Business and Management
Vol. 5, No. 2, 2012, pp. 53-60
DOI:10.3968/j.ibm.1923842820120502.ZR039
The Identification of the Financial Competition of Local Governments in Xia
Zhang Quan Metropolitan Area: Does “the Horizontal Strategic Interaction”
Coexist with “the Vertical Common Action”?
LIU Shanshan[a],*; MU Lin[b]; LIU Lingrui[c]
[a] Lecturer, Doctor of Economics, mainly engaged in regional planning
and industrial organization. Tan Kah Kee College, Xiamen University,
363105, China.
[b] Tan Kah Kee College, Xiamen University, 363105, China.
[c] School of Management, Xiamen University, 363105, China.
*Corresponding author.
Supported by Young Doctor Project of Provincial Social Sciences Plan,
Fujian (No. 2011C046); Subjects in Humanities and Social Sciences of
the Provincial Education Department, Fujian (No. JA11323S); General
Project of Provincial Social Sciences Plan, Fujian (No. 2011B217);
Special Fund for Research of the Central Universities (No. 2010221056);
General Project of Economics in Zhangzhou Philosophical and Social
Scientific Research, 2012 (No. 18).
Received 10 September 2012; accepted 12 November 2012
Abstract
Using the spatial autoregressive model and spatial
error correlation model, we have an empirical test on
the financial competition of the 19 local governments
in Xia Zhang Quan metropolitan area to identify the
characteristics of “the horizontal strategic interaction”
behavior and “the vertical common action” behavior.
The results of our study show that the characteristics of
interaction in the relative size of tax, the relative size of
expenditure, the expenditure for capital construction and
the expenditure on education of the 19 local governments
are in the tactics of mutual mimicking. And in the
characteristics of the vertical common action, the 19 local
governments have followed the
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