Skip to main content

Agglomeration economies and location choice of Korean manufacturers within the United States

Buy Article:

$51.63 plus tax (Refund Policy)


Employing the micro data for 1997–2004, we investigate the location decision of Korean-affiliated manufacturing investments in the United States. The conditional logit estimates confirm that although industry-specific Korean agglomeration and domestic agglomeration play an important role, the Foreign Direct Investment (FDI) location is more sensitively affected by the interstate difference in endowment conditions than by the same nationality agglomeration. Both business service and intermediate good agglomeration are main determinants of FDI location. Furthermore, estimation results show substantial change in the location pattern after recovery from the Asian financial crisis. We find quite different patterns of location decision across industry groups; dispersion forces work greater than the agglomeration force in the consumer goods industry, forward linkages with US upstream firms can be seen in the assembly and processing industry, and typical follow-the-leader pattern mixed with market potential effect by Korean immigrants is seen in the basic material manufacturing industry.

Document Type: Research Article


Affiliations: 1: Department of International Commerce,Keimyung University, Dalseo-Gu,Daegu 704-701, South Korea 2: Department of Economics,Keimyung University, Dalseo-Gu,Daegu 704-701, South Korea 3: Department of Economics,Pusan National University, Geumjeong-Gu,Busan 609-735, South Korea

Publication date: January 1, 2012

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more
Real Time Web Analytics