What factors make private firms become zombie firms in China?

2022 Fiscal Year Final Research Report

• Project/Area Number: 19K01633
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07040:Economic policy-related
• Research Institution: The University of Kitakyushu
• Principal Investigator: Shiraishi Maho 北九州市立大学, 外国語学部, 教授 (40425004)
• Project Period (FY): 2019-04-01 – 2023-03-31
• Keywords: ゾンビ企業 / 中国 / 民営企業 / 企業金融 / イノベーション

Outline of Final Research Achievements

This study investigates whether zombie firms are in existence among Chinese private firms or not. If their existence is confirmed, this study then explores the backgrounds and route that make firms become to zombie one. Zombie firms are defined as what continuously exist in markets even though they should go out from market because of their less competitiveness. Main findings of this study are that: first, private zombie firms are empirically found in China, second, receiving funds via trade credit among the firms make a part of less competitive firms become zombie firms. These findings suggest that Chinese private firms' behavior and the phase faced by them have been changed from before. Further research should more explore the influences brought by these changes in markets. Furthermore, policy implications with respect to private firms' changing are needed.

Free Research Field

開発経済学

Academic Significance and Societal Importance of the Research Achievements

学術的意義はかつて競争的であった企業がゾンビ企業化し、市場の停滞、経済発展の障害となってしまう実態とその背景、要素を実証的に解明することで、途上国、新興国にありがちな経済発展の低迷や経済諸問題の発生要因、及びそれへの対応という意味での政策提言が可能となる点であり、社会的意義は途上国に限らない経済低迷からの脱却、そのための競争力のある企業が市場に生存する健全な市場の維持という視点において、本研究の分析結果から示される提言が貢献しうる点である。