1.  Introduction 2

2.  Data and conceptual framework 8

  2.1. FDI announcements in perspective 8

  2.2. Global growth shocks 10

  2.3. Linkages between FDI and global growth shocks 11

3.  Empirical strategy 12

4.  Results 14

  4.1. FDI response to adverse global growth shocks 14

  4.2. State-dependent responses: Advanced economies versus EMDEs 16

5.  Dissecting FDI responses to adverse global growth shocks 17

  5.1. A flight to safety? 18

  5.2. Does the sectoral composition of FDI matter? 19

  5.3. Do geopolitics matter? 21

6.  Robustness and heterogeneity exercises 23

  6.1. Accounting for exposure 23

  6.2. Alternative growth shock variables 24

    6.2.1. Alternative forecast vintages 24

    6.2.2. Domestic growth shocks 24

  6.3. Testing asymmetries 25

  6.4. Leave-one-year-out exercise 26

  6.5. Heterogeneity checks 27

    6.5.1. Additional measures of institutional conditions 27

    6.5.2. Other sector classifications 28

    6.5.3. Other measures of geopolitical alignment 29

7. Conclusion 29