The Determinants of International New Ventures in Korea: Evidence for the Existence of Foreign Direct Investment and Export

This paper raises important questions about what the main determinants in international new venture. The aim of our empirical study is to identify international new ventures from two points of view, foreign direct investment and export. We describe the main independent variables: years of operation, industry, foreign ownership, firm type, firm size, and ownership type. This empirical study is designed to determine what independent variables impact on international new venture in terms of foreign direct investment and export. Our sample is based on samples of 53 firms listed in the 2005 Human Capital Corporate Panel (HCCP) of Korea Research Institute for Vocational Education and　Training (KRIVET) data. Our empirical results suggest that the main determinants are foreign ownership,industry, and years of operation in case of international new venture as to foreign direct investment. We report our findings that international new venture as to foreign direct investment shows the characteristics of firms with no foreign ownership, service industry, and longer years of operation. Furthermore, we find that the key determinants are industry and foreign ownership in international new venture regarding export. This findings suggest that international new venture regarding export shows the characteristics of firms with service industry and no foreign ownership.