Impact of Foreign Investment in the Yemens Economic Growth

Added on -2020-02-24

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Running head: POLITICAL FACTORS INFLUENCING FDI IN YEMENPolitical Factors Influencing FDI in YemenName of the StudentStudent IDName of UniversityAuthor Note
2POLITICAL FACTORS INFLUENCING FDI IN YEMENData Analysis:The following chapter has been structured on the basis of the chosen themes that havebeen discussed through the interview process. Two different segments have been taken intoconsideration while analyzing the data. First, the primary data were collected through the processof interview; second, collective information has been retrieved from a case study associated withthe topic. In fact, the political intervention in Yemen’s national economy and its position in theglobal economy can be related with each other. In order to analyze the interview response by sixdifferent interviewees, three different themes have been chosen. Following is the list of themes: i)Role of Government for Business Activityii)War in Yemen and its Effect on National Economyiii)Corruption in Yemen Depending on the aforementioned themes a cognitive understanding of the politicalscenario in Yemen has been developed. The predominant force of the analysis hasencompassed the thought process of political consolidation with the foreign companies.However, it has been observed through the process of the interview that Yemen is devoidof enthralling foreign investment that leads to certain dwindle of overall graph of thenational economy. From the literature review, it has been evidently understood that thenational economy of Yemen is highly dependent upon the intervention of the companiesfrom Middle East- specifically the UAE. This chapter of the paper is going to besegmented into two different sections-i)Primary Data Analysisii)Secondary Case Study Analysis
3POLITICAL FACTORS INFLUENCING FDI IN YEMENHowever, it needs to be noted that no statistical data has been retrieved in order to analyze theissue. i)Primary Data Analysis (Qualitative):Six different interview respondents have been chosen in order to find out howimpactful this would be in terms of making a proper decisive data record. Therespondents provided their individual response on the questions based on theaforementioned theme. Theme 1: Role of Government for Business Activity: Upon this theme, there have been several comments. The first interviewee, a businessleader has succinctly demonstrated his view that the Government of Yemen ought to shoulder theresponsibility to handle the internal economic flow of the country. As a matter of fact, this hasbeen taken into certain consideration pertaining to the effective understanding of the processwhere there is a clear understanding that in most of the issues, the procurement studies theprocess of different understandings with the effective culture. In the second interview, the respondent did not succinctly comment on the Government’seffective role on the business activity of the country. However, the response did not deny thefact. The third respondent, a senior political affair officer has considered the question abroader one since this particular theme is embodied with different theories in terms of politicaland economic perception. However, it has remained quite conspicuous that the Government ofYemen has not remained effective in controlling the business process in national level. There hasbeen continuous inter regional conflict between the North and the South of Yemen. The
4POLITICAL FACTORS INFLUENCING FDI IN YEMENobligation of the government can hardly be avoided as it constitutes of several dire activities inboth national and international level. The third respondent has focused on the implementation ofthe legal environment in the business process within the country. According to the fourth respondent, the government of any country like Yemen, cansingle handedly control taxation and regulation of the country’s business activity otherwise,the business process ought to be kept aside without much intervention. The fifth respondent focused on the social contract of the government with thebusiness organizations which would persuade them to follow certain business rule. Thisparticular contract, according to the response, needs to be built between the government, thepeople and the business. In this process different theories can be interpreted to analyze therole of the government in terms of controlling the business process with ease. The theories that have been taken into certain consideration are:i)Theory of Monopolistic Advantage: government’s control over the economy inprevalence ii)Oligopoly theory of advantage: government’s perception and role play on marketcontroliii)Product life cycle model: whether the government plays a role of importantdeterminant in the marketiv)Eclectic theory: conceptualizing ownership advantage

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