Journal of Applied Finance & Banking

A Spatial Econometric Analysis of Healthcare Spending and Medical Resource Allocation Effects on County-Level In-Migration in Taiwan

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• Abstract

   

  This study aims to investigate the effects of healthcare spending and medical resource allocation on county-level in-migration in Taiwan, with a particular focus on the spatial spillover effects. Using balanced panel data from 22 counties and cities across Taiwan between 2000 and 2023, this research adopts the Spatial Durbin Model (SDM) within the framework of spatial econometrics to capture the spatial interdependencies and regional linkages resulting from geographic proximity. The empirical findings reveal that certain indicators of medical resource availability—such as the density of healthcare facilities and nursing personnel—exert significant positive effects not only on local in-migration but also on that of neighboring regions, highlighting the critical role of healthcare accessibility in influencing migration decisions. In contrast, government healthcare expenditure shows a negative relationship with in-migration, which may reflect inefficiencies in resource allocation and local implementation. This study confirms the relevance of Tobler’s First Law of Geography in the context of migration and emphasizes the importance of adopting a regionally integrated policy perspective to improve the equity of population mobility and manage policy externalities effectively.

   

  JEL classification numbers: H51, I18, R23.

  Keywords: Spatial econometric model, Healthcare spending, Medical resources, In-migration, Spatial spillover effects.