In recent years world trade dynamics have definitely shown an accentuated inversion of the globalisation trend and its robust contribution to global economic performance. The Great Financial Crisis (GFC) marked a historic turning point in the degree of global economic integration. Since 2007/08 global trade has entered a period of increasingly protectionist policies (trade barriers, national subsidies, national champions), decelerating growth in trade-intensive sectors, rising policy uncertainty and more recently, trade tensions.
A compelling example of this reversal in the globalisation trend is shown in Figure 1: the evolution of foreign direct investments since 1970. Foreign direct investments have decreased by 60% since their peak in 2007. Cross-border financial flows have experienced a similar trend (Bordo, 2017).
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