Foreign direct investment in developing countries can create jobs, develop technology and new productive capacity, and help local firms access new international markets. Over the past two decades, developing countries have steadily increased their share of global foreign direct investment. In 2012 for the first time, their share exceeded that of developed countries, making foreign direct investment by far the biggest source of international capital flows to developing countries (60% on average). This chapter reviews the trends in foreign direct investment in developing countries, and their implications. Foreign direct investment has displayed volatility at the global level, although developing countries have been cushioned to some extent by the increase in South-South investment, especially by the People’s Republic of China. In 2012, China was the fifth largest outward investor in the world, accounting for 5% of global flows. Regional shares are uneven, however, with Africa receiving the lowest share by far of global investment flows. There is also an increase in the phenomenon of investment de-globalisation, which is weakening the economic linkages between developed countries and the rest of the world.