The Limits of Hegemony: U.S. Banks and Chilean Firms in the Cold War

Felipe Aldunate, Felipe Gonzalez and Mounu Prem
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Felipe Gonzalez: Pontificia Universidad Católica de Chile

No z8f4h_v1, SocArXiv from Center for Open Science

Abstract: Governments in hegemonic states use economic sanctions to induce changes in other countries. What happens to international business networks when these sanctions are in place? We use new historical firm-level data to document the destruction of financial relations between U.S. banks and Chilean firms after socialist Salvador Allende took office in 1970. Business reports and stock prices suggest that firms were mostly unaffected by having fewer links with U.S. banks. Substitution of financial relations towards domestic banks appears to be the key mechanism explaining these findings.

Date: 2022-04-18
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Related works:
Journal Article: The limits of hegemony: U.S. banks and Chilean firms in the Cold War (2024)
Working Paper: The limits of hegemony: U.S. banks and Chilean firms in the Cold War (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:z8f4h_v1

DOI: 10.31219/osf.io/z8f4h_v1

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