Fiscal Decentralization and Environmental Pollution: A Spatial Analysis

Table 6

The direct effects, indirect effects, and total effects of the spatial Durbin model (expenditure fiscal decentralization).

	0-1 rook matrix			Geographic distance matrix			Economic distance nesting matrix
	Direct effect	Indirect effect	Total effects	Direct effect	Indirect effect	Total effects	Direct effect	Indirect effect	Total effects
ER	−0.308 (−1.467)	−0.807 (−1.996)	−1.115 (−2.542)	0.001 (0.006)	−1.339 (−2.403)	−1.338 (−2.354)	−0.113 (−0.510)	−2.464 (−2.650)	−2.578 (−2.863)
ER^2	0.011 (2.869)	−0.006 (−0.874)	0.004 (0.542)	0.011 (2.639)	−0.007 (−0.380)	0.003 (0.142)	0.010 (2.579)	0.019 (0.570)	0.030 (0.926)
FD	2.907 (1.485)	−16.787 (−4.178)	−13.879 (−3.101)	6.669 (3.064)	−16.422 (−2.510)	−9.752 (−1.524)	5.081 (2.340)	−12.444 (−1.615)	−7.363 (−0.975)
FD  ER	0.148 (0.712)	1.270 (3.282)	1.419 (3.496)	−0.186 (−0.859)	2.039 (3.372)	1.852 (3.348)	−0.058 (−0.260)	2.490 (3.309)	2.432 (3.445)
PGDP	0.155 (1.420)	−0.602 (−3.112)	−0.447 (−2.126)	0.020 (0.182)	−0.923 (−3.322)	−0.903 (−3.262)	0.022 (0.200)	−0.594 (−1.914)	−0.571 (−1.781)
STR	−0.822 (−2.257)	−2.328 (−2.750)	−3.150 (−3.111)	−0.966 (−2.662)	−1.600 (−1.726)	−2.567 (−2.352)	−0.644 (−1.693)	−0.661 (−0.487)	−1.306 (−0.868)
CITY	1.484 (4.222)	−1.820 (−2.500)	−0.336 (−0.423)	1.252 (3.569)	−1.816 (−1.820)	−0.564 (−0.558)	1.054 (2.926)	−0.576 (−0.479)	0.477 (0.385)
FDI	0.441 (4.195)	−0.017 (−0.086)	0.423 (2.242)	0.366 (3.254)	0.587 (2.569)	0.953 (4.886)	0.377 (3.487)	1.166 (3.415)	1.543 (5.276)
FD  FDI	−0.526 (−4.194)	−0.013 (−0.054)	−0.539 (−2.334)	−0.459 (−3.376)	−0.745 (−2.734)	−1.205 (−5.272)	−0.466 (−3.541)	−1.547 (−3.605)	−2.014 (−5.474)

Figures in parentheses are T Statistic; , , and denote statistical significance levels at 10%, 5%, and 1%, respectively.