Abstract
The increase in zombie firms acts as a downward pressure for firms' markup, and it lowers inflation in the short run. A 10 percentage point increase in the share of zombie firms drops a 2.47%p of markup on average, reducing a 0.06%p of inflation. If the share of zombie firms increases due to delayed restructuring, the company's profitability will decrease, leading to a vicious cycle of further lowering inflation.
| Translated title of the contribution | Zombie Firms and Markups |
|---|---|
| Original language | Korean |
| Pages (from-to) | 689-711 |
| Journal | 산업경제연구 |
| Volume | 34 |
| Issue number | 3 |
| State | Published - 2021 |