An Empirical Test on Imitation and Competition of Regional Festival: Applying Spatial Regression to Korean Local Governments, 2006~2009

Yoon， Joochul; MOON, KWAGNMIN

This study aims to analyze whether spatially contiguous or remote local governments are more likely to affect other local governments in deciding how much they spend on their regional festivals by applying spatial regression with panel data, 2006~2009. In the past 20 years, regional festivals have widely diffused and it has been argued that many local governments have imitated successful festivals, thereby increasing competition among local governments. This raises the question, which governments do they mimic? We suggest four hypotheses; pioneer (or reference), contiguous, similar (by the criteria of population and financial self-sufficiency), and sisterhood-networked group. Our results show that in fact local governments do not always imitate others. Key findings are that, first, the portion of festival budget increases in the pioneer group, and second, the portion is negatively related to the contiguous governments and sisterhood-networked governments. So local governments hold festivals imitating the pioneer group, but avoid competition with neighborhood or sisterhood governments. Also this study examines the usefulness of spatial regression by reporting different results from the OLS without the spatial effects.

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