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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Format: | Article |
Language: | English |
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Universiti Kebangsaan Malaysia
2016
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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. |
first_indexed | 2024-07-04T06:09:54Z |
format | Article |
id | uum-19197 |
institution | Universiti Utara Malaysia |
language | English |
last_indexed | 2024-07-04T06:09:54Z |
publishDate | 2016 |
publisher | Universiti Kebangsaan Malaysia |
record_format | dspace |
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 |
work_keys_str_mv | AT aljaifihamdanamerali risksandforeigndirectinvestmentinflowsevidencefromyemen AT abdullahnuradianahiau risksandforeigndirectinvestmentinflowsevidencefromyemen AT regupathiangappan risksandforeigndirectinvestmentinflowsevidencefromyemen |