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A regional analysis of crime heterogeneity and small- and medium-sized enterprise (SME) location choices: recent evidence from South Korea

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  • Yung Hyeock Lee

    (KonKuk University)

  • In Hyeock (Ian) Lee

    (Loyola University Chicago)

Abstract

Using an unbalanced panel of 2061 region-year observations of the physical location choices for SMEs and local crime incidents in South Korea, we investigate whether and how various types of local crimes may affect SME location choices for manufacturing versus service firms. We find that SME location choices are related to local crimes in an inverted ‘U’-shaped relationship, and that manufacturing (or service) SMEs’ location selection is more responsive to the incidents of property-related (or contact-related) crimes in a region. We also find that local clustering benefits flatten the inverted ‘U’-shaped curves between SME location choices and local crimes.

Suggested Citation

  • Yung Hyeock Lee & In Hyeock (Ian) Lee, 2022. "A regional analysis of crime heterogeneity and small- and medium-sized enterprise (SME) location choices: recent evidence from South Korea," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 569-597, September.
    • Handle: RePEc:pal:abaman:v:21:y:2022:i:4:d:10.1057_s41291-020-00139-7
    DOI: 10.1057/s41291-020-00139-7
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