The Korea Local Administration Review

This study aimes to analyze the effects of Seoul Metropolitan RigionIndustrial Site regulations on surronding regions manufacturing location. To doso, we conducted two analytical methods: survey method and 2-stage leastsquare regression (2SLS) model. The major findings can be summarized asfollows: 1) high proportion of surveyed factories, originally located in the SMR,has relocated to the surrounding areas because of harsh industrial landregulations in the SMR, 2) the 2SLS regression results show that land useregulation dummies in the SMR were negatively related to the industrial landsupply with a high statistical significance, implying that the SMR's industrialland regulation has been effective in controlling industrial land supply in theSMR, and 3) most importantly, the dummy variable presenting surroundingregions was positively related to industrial land supply, indicating that there hasbeen a spillover effects of the SMR's industrial land use regulations.