The fiscal decentralization gives the local government economic participation status. Is there a spatial spillover effect in the process of local government financial expenditure? This paper introduces the spatial econometric model, and applies the 2005-2016 data to test the spatial correlation of the whole country by calculating the Moran’s I index and the Geary index C. At the same time, we use the local Moran’s index to detect the degree of agglomeration between regions. The results show that there is a significant spatial spillover effect between regions. There are policy imitation behaviors in the region and adjacent areas, and there is a high value and high value agglomeration among regions, as well as a trend of low value and low value agglomeration.