Uneven Development through Profit Repatriation: How Capitalism's Class and Geographical Antagonisms Intertwine

Abstract This article provides the first comprehensive empirical analysis of global profit repatriation as a mechanism of uneven development, thereby challenging the development model of Foreign Direct Investment. Between 2005 and 2020, transnational corporations repatriated an annual average of one trillion USD, corresponding each year to 4.2% of the global FDI stock. Net profit flows take on a centripetal form: the biggest net losers are middle‐income countries such as the Russian Federation, Brazil, and Nigeria; the winners are a few high‐income countries, above all the United States. By analysing the impact of profit repatriation on accumulation dynamics in net profit exporting and importing countries, and by examining the exploitative conditions under which profits are generated in the former, we situate our findings in current theoretical debates on uneven development and geographical transfer of value, as well as on the intertwining of capitalism's class and geographical antagonisms.