The Influences of Urban Economic Environment on the Location Choice of Banking Industry - An Empirical Study on Kaohsiung Urban Area

Abstract

The GDP of Taiwan’s banking industry has increased by 1 5 times from 2009 to 2018 as well as being booming to NT$1 2 trillion within just 10 years It not only takes a necessary place to economy its location but also takes a crucial role to urban economic environment Because it experienced diverse periods since 1989 this paper uses Mixed Multinomial Logit Analysis and the Regression Analysis to verify whether each period has different determinants or not The result points out that it is not exactly same but basically the financial institutions will increase their willingness to invest in the area where has economic growth or it is financially dense areas They tend to avoid investing in where has high land value prevent to set up branches in where has existing branch offices of same bank to avoid repeated investment too They also have different preferences for Kaohsiung urban areas but it looks like that there is a tendency to gradually change from the old urban area to the periphery of the old urban area over time In conclusion if the government wants to develop somewhere to become a financial center besides land control and preferential policies it should be compared with the alternative choices for banks to set up branches Estimating whether the place has enough economic scale and reasonable land burden costs will increase the possibility of bank settings

Date of Award	2020
Original language	English
Supervisor	Yen-Jong Chen (Supervisor)