A Study of Agglomeration, External Economies and Local Public Spending –A Case of Manufacturing Industry in Taiwan

• Main Authors: CHANG, CHING-CHING, 張晶晶
• Other Authors: Ke-Nan,Sun
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/09406846471081675530

碩士 === 國立臺北大學 === 財政學系 === 99 === Recently the tendency of globalization interests many studies in the issue of comparative advantage and specialization, trying to find out how the national productivity and competitiveness improved by industry agglomeration. Marshall(1920) and the researchers of new economic geography considered that the economies of scale and external economies are the main causes of industry agglomeration economy. Using data of 306 townships in Taiwan, this study tested Marshall’s perspective of economic externality by introducing the location quotient (the area-based measured index) alone with the local public expenditure as the dependent variable for the first time. The result supports Marshall’s externality in Taiwanese manufacture industry by weighted least square method. This study also finds that the infrastructure, community development, environmental protection and other public spending have positive effects on the agglomeration economy; however, social welfare, general administration and pension expenditure have opposite influences. Thereby we suggest that in the short run local governments should invite investment by terms of infrastructure and in the long run facilitate the network of industry by the assistance of research institutions.