earticle

영어

The purpose of this paper is to analyze whether foreign investors prefer specific determinants in locating the investment and how the preference will actually differ across the regions, Busan and Kyeongnam. This study is distinguished from the previous studies. Firstly, it is based upon direct interview survey on the FDI determinants specifically in Pusan and Kyeongnam. Secondly, using non-parametric X2(Chi-square)tests, we test somewhat fundamental hypothesis, whether or not international firms do value differently among location factors (or determinants). Thirdly, the correlation has been tested using correlation coefficient Cramer V and chosen level of significance (probability P). Results show that there is significant difference between Pusan and Kyeongnam regions in perceptions of important factors such as infrastructures, markets, incentives, firm-level characteristics and also a significant difference of satisfaction with those factors. This means that international investors do prefer some factors to others and also that this preference differs across regions, Busan and Kyeongnam (including Ulsan) in our context. It indicates that to attract FDI inflow each region needs to develop region-specific FDI policy which is more likely to meet the specific needs of investors.