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Does regionalism matter? Local politics and foreign direct investment in South Korea

Dong-Hun Kim (Department of Political Science, Korea University, Seoul, The Republic of Korea)
Sunwoo Paek (Department of Political Science, Korea University, Seoul, The Republic of Korea)

Asian Education and Development Studies

ISSN: 2046-3162

Article publication date: 12 March 2019

Issue publication date: 9 July 2019

Abstract

Purpose

The purpose of this paper is to examine how political/authoritarian regionalism affects foreign direct investment (FDI) in sub-national states in South Korea.

Design/methodology/approach

This paper employs statistical analysis to examine the relationship between regionalism and FDI, along with historical description of regionalism in South Korea.

Findings

The analyses suggest that not only authoritarian regionalism influence foreign investment to the region but also political regionalism matters. Sub-national states with higher authoritarian regionalism receive less foreign investment while sub-national states with high political regionalism, which imply political stability, receive more FDI than others.

Originality/value

The paper examined how local politics influence foreign investments in South Korea, and suggests stronger decentralization will positively influence FDI in the future.

Keywords

Acknowledgements

This research was supported by a Korean National Research Foundation (NRF)’s Social Science Korea (SSK) Grant (NRF-2017S1A3A2066657) and Korea University Grant (K1806891).

Citation

Kim, D.-H. and Paek, S. (2019), "Does regionalism matter? Local politics and foreign direct investment in South Korea", Asian Education and Development Studies, Vol. 8 No. 3, pp. 295-306. https://doi.org/10.1108/AEDS-02-2018-0041

Publisher

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Emerald Publishing Limited

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