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Direct Investment Factors to a Local Government-led Indutrial Park: A Case Study of the Ben-Chou Industrial Park in Kaohsiung County

abstract
In the past, to accommodate the economic development needs of different times Taiwan has set up industrial parks, export processing zones and science parks of different functions, goals and missions to provide land of different types for company settlement. In recent years, to establish local characteristic industries, local governments have attempted in creating quality investment environments by developing industrial parks to attract company settlement and investment. However aside from looking for the funding necessary to buy up lands and construct park infrastructures, the relevant local developments required by the park peripheral public infrastructural needs both contribute to financial burdens for the local governments. Therefore local governments under limited financial resources should cater to factors influencing company investment strategies in setting up the investment environments and adopt most beneficial strategies in monetary allocation to achieve a win-win situation for both the public and private sectors with limited available resources.
In the 90¡¦s, to accommodate the expansion needs of the metal processing industry, the Kaohsiung County Government began the development of the Ben-Chou Industrial Park in Gangshan town. During the development, Gangshan Industrial Park experienced changes in the industrial environment and the Koahsiung County Government responded to the sales difficulties arisen from these changes by implementing many strategies to strengthen the investment advantages. In 3 years time the park¡¦s stagnant land sales dropped from 90% to 10%, an astounding achievement for all of local government developed industrial parks.
This study sampled 108 companies in Ben-Chou Industrial Park and analyzed the factors involved in companies¡¦ investment in this park. The study shows: 1. When local governments develop industrial parks, characteristic industries can be formed by providing SMEs with room for expansion and utilizing the industrial clustering phenomenon. 2. The government-provided preferential land policy is one of the key factors. 3. The overall cost is still the primary factor in deciding where to invest for SMEs. 4. The government administrative efficiency has gradually become an important factor to consider in deciding where to invest. Therefore, this study suggests that when local governments develop industrial parks, specialized industrial network studies should be taken into consideration and in order to shape these industrial parks into specialized characteristic ones. Secondly, central governments should provide support to local government developed industrial parks; financially preferential policies should be implemented and encourage local governments to develop characteristic industrial parks according to their regional industrial development. Lastly, governments should dedicate in improving administrative efficiency to increase industrial development competitiveness, respond to the needs of industries to amend related policies and regulations and fully enforce these regulations to protect the rights complying companies.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0702107-162418
Date02 July 2007
CreatorsWu, Shu-Hui
ContributorsYuh-Wern Wu, Ying-Fang Huang, Wen-Cheng Wang
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0702107-162418
Rightsunrestricted, Copyright information available at source archive

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