Local production systems, endogenous development and internationalization: The case of the Korean garment district, Dongdaemun

This dissertation explores how a local production system in Korea has successfully revived and improved its competitiveness since the 1990s, contrary to what was predicted by the Product-Life Cycle theory. More specifically, I show that the Dongdaemun garment district exhibited another route toward involvement in international markets, and achieved industrial upgrading differently from the approach described by the Global Commodity Chains school.;In order to analyze the Dongdaemun case, I employed the industrial district model which allows for the possibility of continuous development and sustainability of mature industries--such as the garment industry in high wage countries--by establishing collective institutional mechanisms. In the case of Dongdaemun, local actors have responded to the economic environment which began changing in the late 1980s by implementing various joint actions for the provision of collective services and a dispute resolution mechanism. The first stage of upgrading efforts was characterized by private self-help schemes that involved various dimensions of joint action, including multilateral horizontal, bilateral vertical and bilateral horizontal cooperation among the relevant actors. As Dongdaemun became a substantial job creator as well as an exporter in the context of economic crisis in 1998, public organizations became increasingly engaged in order to boost international competitiveness of the local economy.;In analyzing Dongdaemun's regeneration, I show that relevant local actors were able to enhance local capacities for targeting domestic markets by implementing various joint actions. These actions in turn enhanced the bargaining power of the local economy in engaging with export markets through international buyers. The upgrading and internationalization process of Dongdaemun has demonstrated the possibility of endogenous development by means of utilizing local production systems established throughout the district's longstanding history.