The Indispensable Service of Banks: Commercial Transactions, Industry, and Banking in Revolutionary Mexico

Aurora Gómez-Galvarriato and Gabriela Recio

Enterprise & Society, 2007, vol. 8, issue 1, 68-105

Abstract: Revolutions have important social, political, and economic consequences with which entrepreneurs have to cope to keep their businesses going. This may involve high transaction costs due to the violence that emerges as a result of armed conflicts. In this article we examine the effect that the Mexican Revolution (1910-1920) had on the banking sector and ultimately on bank clients, since revolutionary policies forced most banks to close their doors from 1915 to 1921. By focusing on a major textile firm, the Compañía Industrial Veracruzana, S.A., we observe that companies used nonchartered banks, which spread in the absence of government regulation, and foreign financial institutions, so that daily business operations could continue amidst the revolutionary upheavals.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:entsoc:v:8:y:2007:i:01:p:68-105_00

Access Statistics for this article

More articles in Enterprise & Society from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().