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 relatio...

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Main Authors:	Hamdan Amer Ali Al-Jaifi, Nur Adiana Hiau Abdullah, Angappan Regupathi
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2016
Online Access:	http://journalarticle.ukm.my/10800/ http://journalarticle.ukm.my/10800/ http://journalarticle.ukm.my/10800/1/8932-43006-1-PB.pdf

id	ukm-10800
recordtype	eprints
spelling	ukm-108002017-10-10T12:55:10Z http://journalarticle.ukm.my/10800/ Risks and foreign direct investment inflows: evidence from Yemen Hamdan Amer Ali Al-Jaifi, Nur Adiana Hiau Abdullah, Angappan Regupathi, 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. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/10800/1/8932-43006-1-PB.pdf Hamdan Amer Ali Al-Jaifi, and Nur Adiana Hiau Abdullah, and Angappan Regupathi, (2016) Risks and foreign direct investment inflows: evidence from Yemen. Jurnal Pengurusan, 46 . pp. 89-97. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/805
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
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.
format	Article
author	Hamdan Amer Ali Al-Jaifi, Nur Adiana Hiau Abdullah, Angappan Regupathi,
spellingShingle	Hamdan Amer Ali Al-Jaifi, Nur Adiana Hiau Abdullah, Angappan Regupathi, Risks and foreign direct investment inflows: evidence from Yemen
author_facet	Hamdan Amer Ali Al-Jaifi, Nur Adiana Hiau Abdullah, Angappan Regupathi,
author_sort	Hamdan Amer Ali Al-Jaifi,
title	Risks and foreign direct investment inflows: evidence from Yemen
title_short	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_sort	risks and foreign direct investment inflows: evidence from yemen
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2016
url	http://journalarticle.ukm.my/10800/ http://journalarticle.ukm.my/10800/ http://journalarticle.ukm.my/10800/1/8932-43006-1-PB.pdf
first_indexed	2023-09-18T19:58:28Z
last_indexed	2023-09-18T19:58:28Z
_version_	1777406688221986816

Risks and foreign direct investment inflows: evidence from Yemen

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