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Why zombies can go out: evidence from Chinese manufacturing

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  • Youxing Huang
  • Yan Zhang

Abstract

Using an original and unique Chinese manufacturing firm-level data over 2002–2005, this article investigates why firms without productivity advantages could invest abroad. Conducting propensity score matching method, we find strong evidence that government financial support is an important reason underlying this outward foreign direct investment phenomenon.

Suggested Citation

  • Youxing Huang & Yan Zhang, 2018. "Why zombies can go out: evidence from Chinese manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 25(12), pages 853-856, July.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:12:p:853-856
    DOI: 10.1080/13504851.2017.1374529
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    Cited by:

    1. Shaozhen Han & Guoming Li & Michel Lubrano & Zhou Xun, 2020. "Lie of the Weak: Inconsistent Corporate Social Responsibility Activities of Chinese Zombie Firms," AMSE Working Papers 2001, Aix-Marseille School of Economics, France.
    2. Fang Wang & Ming Yao & Xianhua Huang & Hao Guo & Penghui Zheng & Hongwei Yu, 2022. "The Effects of Investment in Major Construction Projects on Regional Economic Growth Quality: A Difference-In-Differences Analysis Based on PPP Policy," Sustainability, MDPI, vol. 14(11), pages 1-14, June.

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