Regional Underdevelopment: Is FDI the Solution? A Semiparametric Analysis |
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AA regions analysis Assisted Area status benefit capital accumulation rule capital intensity CEPR coefficients competition regulations data set Discussion Paper domestic establishments domestic firms domestic plants econometric electronics industry electronics sector establishment's estimate of ẞ 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 incentives indicate investment function Japanese affiliates Japanese FDI less developed regions level of spillovers linkages Markov process MNE locates multi-plant establishments multinational firms non-selected occur from foreign output parametric parametric estimates plant exit polynomial 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 problem semiparametric estimator semiparametric regression skilled spillovers to domestic subscription Table time-varying endogeneity total factor productivity University of Nottingham Variant A Variant Y₁