The Korea Local Administration Review

This research aims to find out decisive factors of firm relocation inmanufacturing and proper strategies of local government for retaining andattracting firms likely to be relocated. A case study of the Changwon NationalIndustrial Complex indicates that among twelve location factors of manufacturingfirms, access to recreation and park services for labors is not only ameaningful but also an influential determinant of firm’s relocation. This researchfinding emphasizes growing significance of quality of life and culture in localcommunity for attracting firms of high-tech industry. In addition, such factorsas ‘feasibility of achieving business services and information,’ ‘local residentialenvironment,’ ‘logistics and delivery cost,’ ‘local labor costs’ and ‘feasibility of siteexpansion’ are also found influential in some aspect, but not significant instatistics. This research outcome suggests that supply of low cost land and taxsubsidy by local government are not sufficient for retaining and attractingmanufacturing firms. Instead, increasing amenity of cities and buildingbusiness-friendly environment would be more effective in local economicdevelopment.
□ Keywords: Firm Relocation, Industrial Location Factors, Quality of Life,Location Satisfaction, Logistic Regression Model