Fiscal Decentralization and Regional Financial Efficiency: An Empirical Analysis of Spatial Durbin Model

Table 5

Robustness test on Spatial Durbin Models (geographical distance weight matrix).

Independent variables	Dependent variable: sd		Dependent variable: rd
	SDM model	DSDM model	SDM model	DSDM model
feit-1	—	0.202; (12.76)	—	0.200; (12.55)
Lnsd or Lnrd	0.364; (6.36)	0.348; (5.92)	0.173; (5.22)	0.161; (4.58)
Lnpgdp	0.268; (7.35)	0.225; (5.78)	0.242; (6.37)	0.209; (5.22)
Lnurban	−0.026; (−1.12)	−0.026; (−1.12)	−0.028; (−1.20)	−0.027; (−1.15)
Lnitu	0.465; (2.46)	0.478; (2.38)	0.527; (2.78)	0.542; (2.69)
Lninternet	−0.295; (−30.38)	−0.300; (−27.99)	−0.292; (−30.05)	−0.298; (−27.71)
Lnifa	−0.484; (−24.79)	−0.427; (−20.24)	−0.472; (−24.48)	−0.417; (−19.88)
Lnprivate	0.036; (3.12)	0.035; (2.84)	0.035; (3.07)	0.035; (2.88)
WLnsd or WLnrd	−0.264; (−1.49)	−0.418; (−2.25)	−0.277; (−3.70)	−0.241; (−2.76)
WLnpgdp	−0.269; (−4.27)	−0.286; (−4.28)	−0.237; (−3.69)	−0.267; (−3.94)
WLnurban	0.053; (1.47)	0.059; (1.67)	0.059; (1.63)	0.062; (1.73)
WLnitu	0.104; (0.20)	−0.085; (−0.16)	−0.205; (−0.39)	−0.290; (−0.51)
WLninternet	0.217; (8.38)	0.239; (8.53)	0.214; (8.31)	0.235; (8.41)
WLnifa	0.434; (10.52)	0.464; (10.54)	0.433; (11.65)	0.450; (11.29)
WLnprivate	0.062; (1.87)	0.038; (1.06)	0.081; (2.41)	0.050; (1.39)
ρ	0.547; (18.58)	0.580; (19.38)	0.541; (18.39)	0.570; (18.98)
	0.444	0.428	0.443	0.430
log	659.741	665.804	665.804	659.509
Observations	2810	2529	2810	2529

Note: , , and , respectively, represent the significant level of 1%, 5%, and 10%.