Geoscience Reference
In-Depth Information
Table 10.1
Moran's I value of the selected years
1997
2004
2011
No. of
states
Sector
Ln(KL)
Ln(wr)
Ln(KL)
Ln(wr)
Ln(KL)
Ln(wr)
Agriculture
0.14*
0.45***
0.20*
0.33**
0.25**
0.36***
49
Manufacture
0.40***
0.42***
0.31**
0.34***
0.23**
0.25**
49
Utility&
Construction
0.43**
0.38***
0.35***
0.36***
0.29**
0.36***
49
Trade
0.21*
0.24**
0.22**
0.26**
0.07
0.12
49
Truck
0.48***
0.46***
0.58***
0.49***
0.22**
0.01
49
Rail
0.59***
0.59***
0.26**
0.27***
0.51***
0.50***
49
Air
0.01
0.01
0.07
0.07
0.10
0.10
49
0.10
Transit
0.06
0.19**
0.17*
0.20**
0.14*
49
Water
0.13
0.07
0.12
0.06
0.05
0.07
36
Pipeline
0.09 0.00 48
Warehouse 0.36*** 0.37*** 0.33*** 0.32** 0.29*** 0.31*** 49
Information 0.23*** 0.25** 0.21** 0.26** 0.28** 0.21** 49
Service 0.44*** 0.46*** 0.44*** 0.47*** 0.52*** 0.53*** 49
Note
: ***, **, * denote coefficients are significant at 1 %, 5 % and 10 % statistical level,
respectively
Source
: Authors' calculation
0.06
0.07
0.12
0.16*
year. Due to the space and page limits, Table
10.1
only shows the global Moran's I
of capital-labor ratio (
KL
) and wage-rental ratio (
wr
) in the three selected years
covering the beginning, the middle and the end of the investigation period. The
Moran's I values of ratio variables of several sectors in most years are significant,
which indicates spatial autocorrelation exists across different regions and years.
Most of the values are positive indicating a tendency toward clustering, although
some values such as the ratios of rail sectors in 2011are negative, which indicates a
tendency toward dispersion. The existence of spatial dependence among both the
dependent variable and independent variable implies that complicated spatial
autocorrelation is an issue for this analysis.
10.5.2 Step 2 Non-Spatial Assessment
The second step is to obtain the basic values of elasticity of factor substitution for
the CGE analysis. This study follows the classical CES production function esti-
mation of elasticity of factor substitution. The basic equation can be written as:
h
i
˃
kl
˃
kl
˃
kl
1
˃
kl
1
1
Q ¼ α
kl
K
þ
ð
1
α
kl
ÞL
ð
10
24
Þ
:
˃
kl
˃
kl
