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Table 6. 
The impact of government investment on production outcomes: Basic results
(1) D.lnY(2)(3)(4) D.lnL(5)(6)(7) D.lnTFP(8)(9)
WLSWLSFEWLSWLSFEWLSWLSFE
g_investG −0.055*** −0.065*** −0.063*** 0.019*** 0.020*** 0.020*** −0.065*** −0.074*** −0.072*** 
(0.005) (0.005) (0.005) (0.002) (0.003) (0.003) (0.005) (0.005) (0.005) 
zombie_initial*  0.084*** 0.082***  −0.008 −0.008  0.073*** 0.059*** 
g_investG  (0.013) (0.014)  (0.006) (0.006)  (0.013) (0.014) 
zombie_initial  −0.049***   −0.034***   −0.001  
  (0.004)   (0.002)   (0.004)  
Controls Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Year FE Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Industry FE Yes Yes No Yes Yes No Yes Yes No 
Province FE Yes Yes No Yes Yes No Yes Yes No 
Firm FE No No Yes No No Yes No No Yes 
Observations 566,271 566,271 566,271 579,678 579,678 579,678 566,271 566,271 566,271 
R2 0.020 0.020 0.014 0.017 0.018 0.012 0.010 0.011 0.012 
(1) D.lnY(2)(3)(4) D.lnL(5)(6)(7) D.lnTFP(8)(9)
WLSWLSFEWLSWLSFEWLSWLSFE
g_investG −0.055*** −0.065*** −0.063*** 0.019*** 0.020*** 0.020*** −0.065*** −0.074*** −0.072*** 
(0.005) (0.005) (0.005) (0.002) (0.003) (0.003) (0.005) (0.005) (0.005) 
zombie_initial*  0.084*** 0.082***  −0.008 −0.008  0.073*** 0.059*** 
g_investG  (0.013) (0.014)  (0.006) (0.006)  (0.013) (0.014) 
zombie_initial  −0.049***   −0.034***   −0.001  
  (0.004)   (0.002)   (0.004)  
Controls Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Year FE Yes Yes Yes Yes Yes Yes Yes Yes Yes 
Industry FE Yes Yes No Yes Yes No Yes Yes No 
Province FE Yes Yes No Yes Yes No Yes Yes No 
Firm FE No No Yes No No Yes No No Yes 
Observations 566,271 566,271 566,271 579,678 579,678 579,678 566,271 566,271 566,271 
R2 0.020 0.020 0.014 0.017 0.018 0.012 0.010 0.011 0.012 

Source: Authors’ estimation.

Note: Each column reports the coefficient estimates and their robust standard errors (in the parentheses), all of which are displayed to three decimal places. All the coefficient estimates of control variables and fixed effect dummies are not reported. WLS = weighted least squares; FE = fixed effects.

***Statistically significant at the 1% level; **statistically significant at the 5% level; *statistically significant at the 10% level.

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