Geopolitical Risks (GPRs) and Foreign Direct Investments: A Business Risk Approach

α
Nyande Fania
Nyande Fania
σ
Chen Yan
Chen Yan
ρ
Joseph Bikanyi Kuyon
Joseph Bikanyi Kuyon
Ѡ
Sow Djeri
Sow Djeri
α to Ѡ Dongbei University of Finance and Economics Dongbei University of Finance and Economics

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Geopolitical Risks (GPRs) and Foreign Direct Investments: A Business Risk Approach

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Abstract

This research seeks to investigate the effect of Geopolitical Risks on Foreign Direct Investment. Data are from all sixteen countries in West Africa. This research uses the Generalized linear model to examine the effect of geopolitical risk on Foreign Direct Investment. The findings reveal that although geopolitical risk(s) have an impact on Foreign Direct Investment, however, not all the components of Geopolitical risk(s) have the same relationship with Foreign Direct investments. The implication for this is that investors need to have sufficient information on Geopolitical Risk(s) to do a risk assessment and see whether the Geopolitical Risk(s) is within their risk appetite and risk culture. This research adds to the literature of decision theory, which states that the client must have sufficient knowledge about issues and topics of interest before making a decision.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Nyande Fania. 2020. \u201cGeopolitical Risks (GPRs) and Foreign Direct Investments: A Business Risk Approach\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 20 (GJMBR Volume 20 Issue B1): .

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: E22
Version of record

v1.2

Issue date

February 3, 2020

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en
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This research seeks to investigate the effect of Geopolitical Risks on Foreign Direct Investment. Data are from all sixteen countries in West Africa. This research uses the Generalized linear model to examine the effect of geopolitical risk on Foreign Direct Investment. The findings reveal that although geopolitical risk(s) have an impact on Foreign Direct Investment, however, not all the components of Geopolitical risk(s) have the same relationship with Foreign Direct investments. The implication for this is that investors need to have sufficient information on Geopolitical Risk(s) to do a risk assessment and see whether the Geopolitical Risk(s) is within their risk appetite and risk culture. This research adds to the literature of decision theory, which states that the client must have sufficient knowledge about issues and topics of interest before making a decision.

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Geopolitical Risks (GPRs) and Foreign Direct Investments: A Business Risk Approach

Nyande Fania
Nyande Fania Dongbei University of Finance and Economics
Chen Yan
Chen Yan
Joseph Bikanyi Kuyon
Joseph Bikanyi Kuyon
Sow Djeri
Sow Djeri Dongbei University of Finance and Economics

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