Global investment

DOI: 10.4324/9781003057611-4

Foreign direct investment (FDI) has been a major driving force behind the third wave of globalisation. It has been key in establishing global value chains (GVCs), with about half of the inflows going to developing countries and countries in transition in the 2010s. However, recently FDI inflows are more or less stagnating, yet the global stock of FDI remains at a high and even increasing level (see Figure 4.1). This chapter explores the main reasons why firms involve themselves by means of FDI in global production, and discusses the future of FDI under the conditions of the emerging new global economy (NGE).

FIGURE 4.1 Foreign Direct Investment Inflows and Inward Stocks, 1990–2019 (in million ...

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