Does lowering entry cost counter the persistence of zombie firms?
by Nguyen Thi Tuong Anh; Doan Quang Hung; Nam Hoang Vu; Bui Anh Tuan
International Journal of Business and Globalisation (IJBG), Vol. 27, No. 3, 2021

Abstract: How to deal with zombie firms, which are inefficient but still surviving, is an important question that needs to be addressed by all countries. Using longitudinal data of enterprises and local business environment in a transition economy, this study shows that reducing entry costs to facilitate competition in the market is a key to drive out the persistence of being zombies, which typically characterises a large number of state-owned and foreign invested firms in transition economies. The study further reveals that the strategy to remove persistence of zombie firms by lowering entry costs in the market is effective for enterprises in manufacturing industries, while it is not in non-manufacturing industries.

Online publication date: Fri, 26-Feb-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com