Research Article
Study on the Efficient Allocation of Resources for the Attraction of Corporate Investment
1 Hallym University, 2 Hankuk University of Foreign Studies, 3 Seoul National University of Science and Technology, 4 Gyeongsang National University
Published: January 2009 · Vol. 13, No. 2 · pp. 157-181
Full Text
Abstract
In order to attract corporate investments into a provincial region, the regional government must have the efficient and systematic resource-allocation strategies through which the corporate locations would become attractive. In relation to developing those strategies, this study used 19 attraction factors, including residents’favorable attitude, regional image, economic situation, reasonable real estate prices, infrastructures for life, labor supply, transportation, industrial infrastructures, financing, and possibility of real estate price increases, promotions, subsidies, financial support, tax reduction and exemption, public administrative service, labor supply, composition of infrastructure, management support, and research infrastructures. For this study, we used a total of 348 samples ,including 235 manufacturers with more than 15 employees and 113 experts. Data were analyzed according to type of regional area, type of response subjects, corporate size, and business type, with crosstabulation analyses. To determine the priority of factors, we investigated each factor using a significance test based on the degree of importance, the degree of satisfaction, and the degree of need for improvement. First of all, the needs for differentiated investments-attracting strategies were recognized since the degree of need for improvement on each factor varied with type of categories. Second, there were significant differences between the already existing companies and the companies which newly moved in to the region in terms of the supports from the policy factors. Third, the possibility of real estate price increase was shown to have the largest effect on the degree of satisfaction among all of the environmental factors.
