ΜΕΑ

The study examines the type and magnitude of negative externalities stemming from “zombie” firms in the Greek economy, focusing on investment, employment and productivity. The descriptive analysis reveals a high positive correlation in the trends between non-performing business loans and the number of zombie companies in the Greek economy over the last twenty years. Subsequently, the quantitative analysis uncovers significant direct and indirect effects from the degree of density of zombie firms at the total economy and sectoral levels. The analysis suggests that healthy firms outperform zombie firms in terms of investment growth, employment growth and productivity levels. [...]