Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284302 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 952
Publisher: 
Queen Mary University of London, School of Economics and Finance, London
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.
Subjects: 
firms
banks
Cold War
United States
Salvador Allende
Document Type: 
Working Paper

Files in This Item:
File
Size
4.15 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.