Municipal governments borrow money for crucial municipal services, for ex, for supporting building of new infrastructure or economic development. An important role of the a municipal government investment is "to help sustain a high quality of local infrastructure" (Preston, 1981), which is sometimes finianced by borrowing money. However, increasing dependence on municipal debt for development and infrastructure pourposes can become a burden on the municipality, since, it will impose constraints on municipality’s operating budget as the creditors must be paid back. Hence, we should study about the determinants of municipal debts so as to know why certain municipalities have high debt levels and if there is any spatial dependence between municipalities regarding the debt.
Data obtained from the following source:-
Main project file is main.R
The folder SHP contains shape files for the study region.
The folder QGIS contains the QGIS project which was used to create maps.
- data.table
- spatialprobit
- ggplot2