논문

Local governments compete with one another to induce influential foreign capital within their areas. They are confronted with one another to develop local economy and to financially autonomize themselves from the central government. On the other hand, multinational enterprises take the advantage of the optimal location through the strategies of the globalization, such as the bolstering of network strategies and foreign expansion of their activities. Of course, It has been caused by the development of information technology. Thus, the research questions of this study are as follows;
What are the strategies of local governments to acquire the financial autonomy and build the bases of economic development in these changes of international environments? What makes multinational enterprises decide to invest in certain areas? What are the strategic responses of local governments to induce foreign capital? This research has a purpose of answering to these questions based on selected literature review and empirical evidences of Korean local governments. The strategies employed in this paper are the construction of information infrastructure, the provision of industrial complex, the political stability and collaborative relationship between capital and labor, the deregulation, and the development of incentive policies, etc.