Geopolitical fragmentation and friendshoring
Cătălin Roșioru
As geopolitical uncertainty rises – due to events ranging from Brexit and the increasing rivalry between major economies to Russia’s invasion of Ukraine – firms are increasingly factoring political alignment into their investment decisions. This column uses detailed global data on greenfield projects, mergers and acquisitions, and affiliate stocks, and four measures of political alignment, to explore how foreign direct investment has become more sensitive to geopolitical distance. It reveals
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