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The field of international business (IB) has a long history of examining the nexus between FDI and economic development, with diverging views on its causal direction, mechanisms, and outcomes. However, the focal questions and levels of analysis have substantially changed over time, leading to the question of whether a new paradigm shift has emerged in our thinking about how FDI affects economic development. The aim of the panel is to answer this question by re-examining the FDI-development nexus through contemporary and state-of-the-art insights. We focus on how FDI affects sustainable economic development in developing countries. We first discuss how the knowledge and realities of the underlying mechanisms and boundary conditions have evolved far beyond those considered in earlier IB literature, including the boundary conditions incorporated in the SDGs. We will then propose and discuss a research agenda on IB and development to advance the debate on the impact of MNEs on their broader social context.