“Connector economies” and the fractured state of foreign direct investment

The Bretton Woods Committee is pleased to Member Spotlight Hung Tran and his recent publication with the Atlantic Council discussing how heightened geopolitical rivalry has led to geoeconomic fragmentation, which is evident not only in world trade but also in the flow of foreign direct investment (FDI).

According to his article, "Geopolitical tension and geoeconomic fragmentation have elevated uncertainty which, together with slow growth, have significantly cut back global FDI flows as a share of economic activity—from 3.3 percent of global GDP in the 2000s to only 1.3 percent in the past five years."