Risks and foreign direct investment inflows: Evidence from Yemen

This study aims to find the relationship between the political, exchange rate and inflation risk factors with the Yearly Foreign Direct Investment (YFDI) in Yemen, over the period between 1990 to 2010. Secondary data results showed that political risk and exchange rate risk have an inverse relations...

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Main Authors: Al-Jaifi, Hamdan Amer Ali, Abdullah, Nur Adiana Hiau, Regupathi, Angappan
Format: Article
Language:English
Published: Universiti Kebangsaan Malaysia 2016
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/19197/1/JP%2046%202016%2089%20-%2097.pdf
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author Al-Jaifi, Hamdan Amer Ali
Abdullah, Nur Adiana Hiau
Regupathi, Angappan
author_facet Al-Jaifi, Hamdan Amer Ali
Abdullah, Nur Adiana Hiau
Regupathi, Angappan
author_sort Al-Jaifi, Hamdan Amer Ali
collection UUM
description This study aims to find the relationship between the political, exchange rate and inflation risk factors with the Yearly Foreign Direct Investment (YFDI) in Yemen, over the period between 1990 to 2010. Secondary data results showed that political risk and exchange rate risk have an inverse relationship with YFDI, while inflation risk has a significant positive relationship.Further analysis on a survey collected from 62 multinational enterprises (MNEs) operating in Yemen showed an insignificant relationship between the perceived political, exchange rate and inflation risk factors and corporate foreign direct investment (CFDI).The conflicting results possibly imply that the MNEs' subsequent capital investments may not be affected by the perceived political, exchange rate and inflation risks that would nonetheless have been considered during the initial business plan.It is likely that MNEs that were already operating in Yemen may have developed capabilities in terms of knowledge, bargaining and lobbying skills.Therefore, perceived risks are no longer seem to influence their investment decisions.
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spelling uum-191972016-11-13T01:42:36Z https://repo.uum.edu.my/id/eprint/19197/ Risks and foreign direct investment inflows: Evidence from Yemen Al-Jaifi, Hamdan Amer Ali Abdullah, Nur Adiana Hiau Regupathi, Angappan HD28 Management. Industrial Management This study aims to find the relationship between the political, exchange rate and inflation risk factors with the Yearly Foreign Direct Investment (YFDI) in Yemen, over the period between 1990 to 2010. Secondary data results showed that political risk and exchange rate risk have an inverse relationship with YFDI, while inflation risk has a significant positive relationship.Further analysis on a survey collected from 62 multinational enterprises (MNEs) operating in Yemen showed an insignificant relationship between the perceived political, exchange rate and inflation risk factors and corporate foreign direct investment (CFDI).The conflicting results possibly imply that the MNEs' subsequent capital investments may not be affected by the perceived political, exchange rate and inflation risks that would nonetheless have been considered during the initial business plan.It is likely that MNEs that were already operating in Yemen may have developed capabilities in terms of knowledge, bargaining and lobbying skills.Therefore, perceived risks are no longer seem to influence their investment decisions. Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/19197/1/JP%2046%202016%2089%20-%2097.pdf Al-Jaifi, Hamdan Amer Ali and Abdullah, Nur Adiana Hiau and Regupathi, Angappan (2016) Risks and foreign direct investment inflows: Evidence from Yemen. Jurnal Pengurusan, 46. pp. 89-97. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/article/view/8932
spellingShingle HD28 Management. Industrial Management
Al-Jaifi, Hamdan Amer Ali
Abdullah, Nur Adiana Hiau
Regupathi, Angappan
Risks and foreign direct investment inflows: Evidence from Yemen
title Risks and foreign direct investment inflows: Evidence from Yemen
title_full Risks and foreign direct investment inflows: Evidence from Yemen
title_fullStr Risks and foreign direct investment inflows: Evidence from Yemen
title_full_unstemmed Risks and foreign direct investment inflows: Evidence from Yemen
title_short Risks and foreign direct investment inflows: Evidence from Yemen
title_sort risks and foreign direct investment inflows evidence from yemen
topic HD28 Management. Industrial Management
url https://repo.uum.edu.my/id/eprint/19197/1/JP%2046%202016%2089%20-%2097.pdf
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AT abdullahnuradianahiau risksandforeigndirectinvestmentinflowsevidencefromyemen
AT regupathiangappan risksandforeigndirectinvestmentinflowsevidencefromyemen