The Determinants of the Redistribution of Manufacturing Activities in Korea

Abstract

Industrial location has been of great concern to economists, geographers, and regional scientists who seek a spatial theory within their theoretical variants. Although the purpose of this study is not to discuss general location theory, a preview of location theory is needed, which will provide an explanatory framework in searching for the locational determinants of Korean industrial activity. Historically, the major approach to manufacting location theory has been the economic equilibrium approach, which can be generalized into two subcategories. One is a partial equilibrium approach, largely initiated and developed by A. Weber, with the primary emphasis on minimizing cost factors; the other follows a general equilibrium framework along the lines of Walras, Pareto, and Cassel. Each approach has a long history and tradition. However, the partial equilibrium approach presents a reality too naive to represent the complexities of the industrial world; and the general equilibrium approach grapples with a task presently too difficult for the state of the economic sciences.