| ID | 159064 |
| Title Proper | Zombie firms and over-capacity in Chinese manufacturing |
| Language | ENG |
| Author | Shen, Guangjun |
| Summary / Abstract (Note) | The problems of over-capacity and zombie firms in China's manufacturing attract all aspects of attention, but academic analysis is still absent. Using firm-level data of Chinese manufacturing, this study first documents the problems of over-capacity and zombie firms during 2011–2013. We find that the over-capacity problem is much more severe in the northeastern and western regions of China, in heavy chemical industries, and in state-owned sector. The distribution of zombie firms is in a similar manner across region, industry and ownership. We also empirically test the relationship between zombie firms and over-capacity, finding that zombie firms cause and worsen over-capacity by crowding out healthy firms. |
| `In' analytical Note | China Economic Review Vol. 44; Jul 2017: p.327-342 |
| Journal Source | China Economic Review 2017-07 |
| Key Words | China ; Crowd Out ; Over-Capacity ; Capacity Utilization ; Zombie Firm |