Keywords
zombie firms, Northeast China, enterprise performance, instrument variables
Abstract
This paper researches on economic depression of Northeast China under the policy of "Revitalizing Northeast China"and the exit problem of zombie firms,based on the data of Chinese industrial enterprises from 1999 to 2007,and the modified FN method which could identify zombie firms.This paper finds that there is a significantly negative correlation between the proportion of zombie firms and enterprise performance.Zombie firms reduce enterprise performance by occupying investment,reducing R&D investment and grabbing the allocation of government subsidies.In this process,the decline of private firms and foreign-funded firms' performance are much greater than state-owned firms.After using the tool variable,the conclusion is still valid.This paper provides a new perspective for understanding the economic downturn phenomenon in northeast China,and provides policy supports for accelerating the disposal of zombie firms and revitalizing the northeast China economy.
DOI
10.16315/j.stm.2020.01.004
Recommended Citation
YE, Jiao; ZHAO, Tian-yi; and NIU, Le-quan
(2020)
"Empirical study on the relationship between zombie firms distribution and economic depression in Northeast China,"
Journal of Science and Technology Management: Vol. 22:
Iss.
1, Article 5.
DOI: 10.16315/j.stm.2020.01.004
Available at:
https://jstm.researchcommons.org/journal/vol22/iss1/5
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
