This study employed spatial econometric
models to analyze the company registration site selection in various counties
and cities of Taiwan from 2002 to 2021 and examined its correlation with the
labor market. The results revealed that over the past two decades, the number
of company registrations in Taiwan has consistently risen, with a growth rate
of 60.61%. Metropolitan areas such as Taipei City, New Taipei City, Taichung
City, Kaohsiung City, and Taoyuan City took the lead in terms of registration
numbers. Furthermore, the study found that local labor market factors and
spatial spillover effects significantly influence company location decisions.
Specifically, using the spatial Durbin model, it was discovered that an
increase in unemployment rates negatively impacts company registrations in
neighboring counties and cities; growth in employment numbers has a positive
overall effect on company registrations; a rise in the proportion of industrial
workers may be detrimental to company startups; a higher proportion of
employees with tertiary education positively affects company registrations; an
increase in the proportion of employed individuals aged 45 to 64 negatively
impacts company registrations. The research findings offer valuable insights
for policymakers, assisting in the creation of a more conducive entrepreneurial
JEL classification numbers: C31, J21.
Keywords: Spatial autocorrelation, Spatial Dubin model, Spillover
effects, Labor market, Number of companies.