?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F3660%2F&rft.title=The+Indirect+Effects+of+FDI+on+Trade%3A+A+Network+Perspective&rft.creator=Metulini%2C+Rodolfo&rft.creator=Riccaboni%2C+Massimo&rft.creator=Sgrignoli%2C+Paolo&rft.creator=Zhu%2C+Zhen&rft.subject=HB+Economic+Theory&rft.subject=HD28+Management.+Industrial+Management&rft.description=The+relationship+between+international+trade+and+foreign+direct+invest-%0D%0Ament+(FDI)+is+one+of+the+main+features+of+globalization.+In+this+paper%0D%0Awe+investigate+the+effects+of+FDI+on+trade+from+a+network+perspective%2C%0D%0Asince+FDI+takes+not+only+direct+but+also+indirect+channels+from+origin+to%0D%0Adestination+countries+because+of+firms'+incentive+to+reduce+tax+burden%2C%0D%0Ato+minimize+coordination+costs%2C+and+to+break+barriers+to+market+entry.%0D%0AWe+use+a+unique+data+set+of+international+corporate+control+as+a+measure%0D%0Aof+stock+FDI+to+construct+a+corporate+control+network+(CCN)+where+the%0D%0Anodes+are+the+countries+and+the+edges+are+the+corporate+control+relation-%0D%0Aships.+Based+on+the+CCN%2C+the+network+measures%2C+i.e.%2C+the+shortest+path%0D%0Alength+and+the+communicability%2C+are+computed+to+capture+the+indirect%0D%0Achannel+of+FDI.+Empirically+we+find+that+corporate+control+has+a+positive%0D%0Aeffect+on+trade+both+directly+and+indirectly.+The+result+is+robust+with+dif-%0D%0Aferent+specifications+and+estimation+strategies.+Hence%2C+our+paper+provides%0D%0Astrong+empirical+evidence+of+the+indirect+effects+of+FDI+on+trade.+More-%0D%0Aover%2C+we+identify+a+number+of+interplaying+factors+such+as+regional+trade%0D%0Aagreements+and+the+region+of+Asia.+We+also+find+that+the+indirect+effects%0D%0Aare+more+pronounced+for+manufacturing+sectors+than+for+primary+sectors%0D%0Asuch+as+oil+extraction+and+agriculture.&rft.publisher=IMT+School+for+Advanced+Studies+Lucca&rft.date=2017-03&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.rights=cc_by_nd&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F3660%2F1%2FEIC_WP_4_2017.pdf&rft.identifier=++Metulini%2C+Rodolfo+and+Riccaboni%2C+Massimo+and+Sgrignoli%2C+Paolo+and+Zhu%2C+Zhen++The+Indirect+Effects+of+FDI+on+Trade%3A+A+Network+Perspective.++EIC+working+paper+series++%234%2F2017++++IMT+School+for+Advanced+Studies+Lucca++++ISSN+2279-6894.++++++