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

Nyande Fania; Chen Yan; Joseph Bikanyi Kuyon; Sow Djeri

Authors

Nyande Fania
Chen Yan
Joseph Bikanyi Kuyon
Sow Djeri

Keywords:

geopolitical risk foreign direct investment politics geography macroeconomics risk management

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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How to Cite

Geopolitical Risks (GPRs) and Foreign Direct Investments: A Business Risk Approach. (2020). Global Journal of Management and Business Research, 20(B1), 1-8. https://journalofbusiness.org/index.php/GJMBR/article/view/3003

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