The Foreign Direct Investment (FDI), that was mainly flowing to developing countries before the Second World War, became increasingly concentrated among developed economies since the wars aftermath. A similar increase in the concentration of other capital flows and trade followed suit during many decades in which the liberal post-war international order was far from being global. By late 20th century, increased international willingness to expand global markets was matched by changes in the economic policy of developing countries, originating a process that started to reshape economic geography and reorient FDI flows and other economic flows. Eventually, in the wake of the 2008 global financial crisis, developing countries again received the bulk of global FDI flows. The author argues that the primary reason for the new distribution of FDI is how institutional change at the global level interacted with institutional change within countries. As such, this interaction will also define th
