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Article
Publication date: 12 March 2019

Dong-Hun Kim and Sunwoo Paek

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

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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.

Details

Asian Education and Development Studies, vol. 8 no. 3
Type: Research Article
ISSN: 2046-3162

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