The limits of hegemony: US banks and Chilean firms in the Cold Ware

• 成果类型: Article
• 署名作者: Aldunate, Felipe; Gonzalez, Felipe; Prem, Mounu
• 署名单位: Universidad de los Andes - Chile; University of London; Queen Mary University London; Universidad del Rosario
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2023.103212
• 发表日期: 2024
• 关键词: firms; banks; Cold War; United States; Salvador Allende

摘要

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.