Discussion Paper

No. 2019-14 | February 12, 2019
Thoughts on the demise of FDI
(Published in Special Issue FDI and multinational corporations)


This essay addresses the recent deceleration in the pace of global FDI and asks whether multinational corporations are actually in retreat. It identifies the forces that are slowing the expansion of FDI, and sketches the role that multinational corporations will play in the future.

JEL Classification:

F21, F23


  • Downloads: 228


Cite As

Ronald B. Davies (2019). Thoughts on the demise of FDI. Economics Discussion Papers, No 2019-14, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2019-14

Comments and Questions

Philipp Harms - On Ron Davies' Essay
February 12, 2019 - 17:32

Is FDI a phenomenon that will still be around in the years to come, or do multinational corporations follow a business model whose
time has come? In a recent cover story, The Economist painted a rather gloomy picture, documenting the worsening performance of firms operating in different countries and diagnosing ...[more]

... the demise of the multinational corporation. In his essay, Ron Davies addresses this question, arguing that, while the volume, composition, and character of FDI may change, cross-border investment will play an important role for the foreseeable future.

Fabrizio Onida, University Bocconi, Milano - Comments
February 18, 2019 - 09:34

See attached file

Konstantin Wacker - Some additional thoughts on the demise of FDI...
February 26, 2019 - 12:56

...and on the contributions by Ron Davies and Fabrizio Onida.