Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317541 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 22 [Issue:] 6 [Year:] 2021 [Pages:] 1633-1654
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
This study tests how different types of government funding affect the recovery of zombie enterprises in the manufacturing sector of China. The results show that funding for production and innovation can revive zombie enterprises in expanding industries, while funding for interest cannot. Furthermore, funding for production and innovation can share costs, increase investment in selling or innovation, and promote the scaling down of businesses through external governance effects, helping zombie enterprises to recover. Finally, none of the funding types can revive zombie enterprises in contracting industries; these can recover only through access to larger overseas markets.
Subjects: 
government funding
zombie enterprises
recovery mechanism
industry life cycle
Chinese economy
transformation and upgrading
JEL: 
L53
L6
O23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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