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AA regions analysis Assisted Area status capital accumulation rule capital intensity CEPR coefficients competition regulations data set Discussion Paper domestic establishments domestic firms domestic plants dummies econometric Economic electronics industry electronics sector Email employees employment share establishment's factors of production FDI variables FDI1 Japan FDI1 USA FDI2 FDI3 first-difference fixed effects foreign affiliates foreign direct investment foreign employment foreign firms foreign-owned firms four-digit industry incentives indicate investment function Japanese affiliates Japanese FDI lagging regions less developed regions level of spillovers linkages MNE locates multi-plant establishments multinational firms non-selected occur from foreign output parametric parametric estimates plant exit positive spillovers production function productivity differential productivity shock productivity spillovers productivity than domestic R-squared regional FDI regional level regional spillovers regression sample selection bias selection equation selection problem semiparametric estimator semiparametric regression skilled spillovers to domestic subscription Table time-varying endogeneity total factor productivity University of Nottingham Variant A Variant welfare