Skip to Main Content
Table 7. 
Testing the robustness of the impact of government investment
(1)(2)(3)(4)(5)(6)(7)(8)
Lagged government investmentInstrumental variable estimation
I/KD.lnYD.lnLD.lnTFPI/KD.lnYD.lnLD.lnTFP
g_investG −0.081*** −0.040*** 0.018*** −0.043*** −0.146 −0.979*** 0.211*** −1.007*** 
 (0.015) (0.007) (0.004) (0.008) (0.169) (0.064) (0.033) (0.062) 
zombie* 0.002 0.046*** −0.013* 0.039** 2.409*** 2.347*** 0.897*** 1.979*** 
g_investG (0.027) (0.016) (0.007) (0.016) (0.511) (0.214) (0.110) (0.206) 
zombie −0.071*** 0.022*** −0.058*** 0.063*** −0.516*** −0.422*** −0.184*** −0.314*** 
 (0.007) (0.004) (0.002) (0.004) (0.083) (0.035) (0.018) (0.034) 
Controls Yes Yes Yes Yes Yes Yes Yes Yes 
Year FE Yes Yes Yes Yes Yes Yes Yes Yes 
Industry FE Yes Yes Yes Yes Yes Yes Yes Yes 
Province FE Yes Yes Yes Yes No No No No 
Observations 386,474 378,487 386,480 378,487 579,672 566,271 579,678 566,271 
R2 0.016 0.011 0.012 0.007 
DWH test     25.085 228.471 243.980 241.161 
(p value)     (0.000) (0.000) (0.000) (0.000) 
First-stage F     717.07 709.616 716.929 709.616 
(1)(2)(3)(4)(5)(6)(7)(8)
Lagged government investmentInstrumental variable estimation
I/KD.lnYD.lnLD.lnTFPI/KD.lnYD.lnLD.lnTFP
g_investG −0.081*** −0.040*** 0.018*** −0.043*** −0.146 −0.979*** 0.211*** −1.007*** 
 (0.015) (0.007) (0.004) (0.008) (0.169) (0.064) (0.033) (0.062) 
zombie* 0.002 0.046*** −0.013* 0.039** 2.409*** 2.347*** 0.897*** 1.979*** 
g_investG (0.027) (0.016) (0.007) (0.016) (0.511) (0.214) (0.110) (0.206) 
zombie −0.071*** 0.022*** −0.058*** 0.063*** −0.516*** −0.422*** −0.184*** −0.314*** 
 (0.007) (0.004) (0.002) (0.004) (0.083) (0.035) (0.018) (0.034) 
Controls Yes Yes Yes Yes Yes Yes Yes Yes 
Year FE Yes Yes Yes Yes Yes Yes Yes Yes 
Industry FE Yes Yes Yes Yes Yes Yes Yes Yes 
Province FE Yes Yes Yes Yes No No No No 
Observations 386,474 378,487 386,480 378,487 579,672 566,271 579,678 566,271 
R2 0.016 0.011 0.012 0.007 
DWH test     25.085 228.471 243.980 241.161 
(p value)     (0.000) (0.000) (0.000) (0.000) 
First-stage F     717.07 709.616 716.929 709.616 

Source: Authors’ estimation.

Note: Each column reports the coefficient estimates and their robust standard errors (in parentheses), all of which are displayed to three decimal places. All the coefficient estimates of control variables and fixed effect dummies are not reported. R2 has no statistical meaning in the context of 2SLS. The null hypothesis of Durbin-Wu-Hausman test is the instrumented government stimulus and cross-term are exogenous, which is rejected when p = 0. First-stage F statistic confirms that the instrument variables are not weak.

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

Close Modal

or Create an Account

Close Modal
Close Modal