/jurnalpengurusan Sun, 09 Oct 2022 14:44:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/risks-and-foreign-direct-investment-inflows-evidence-from-yemen/?utm_source=rss&utm_medium=rss&utm_campaign=risks-and-foreign-direct-investment-inflows-evidence-from-yemen Sun, 09 Oct 2022 14:44:29 +0000 /jurnalpengurusan/?post_type=article&p=4519 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.

]]> /jurnalpengurusan/article/foreign-direct-investment-financial-development-and-economic-growth-a-panel-data-analysis/?utm_source=rss&utm_medium=rss&utm_campaign=foreign-direct-investment-financial-development-and-economic-growth-a-panel-data-analysis Sat, 08 Oct 2022 11:28:10 +0000 /jurnalpengurusan/?post_type=article&p=2551 This study investigates the effects of financial development in enabling foreign direct investment to promote economic growth. A sample of 65 developing countries is examined over the period of 2009 to 2015 with the dynamic panel estimation by using Generalized Method of Moment (GMM). Financial development is measured using three financial indicators and an index of financial development is constructed based on the following indicators: domestic credit to private sector, liquid liabilities and private credit by banks. The results demonstrate that the financial development index contributes positively and higher than each financial development proxy in influencing the effects of FDI on economic growth. However, FDI influence negative effect in the group of countries of low level of financial development. Thus, it suggests that financial development need to be increased and serves as a form of absorptive capacity that enable the positive growth effects of FDI in the recipient countries.

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