Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336731 
Year of Publication: 
2026
Series/Report no.: 
GLO Discussion Paper No. 1715
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We study the economic effects of a large nationalization program using newly assembled firmlevel data from Chile under Salvador Allende (1970-73). Using a difference-in-differences design, we show that nationalization substantially reduced firm performance and international business activity relative to comparable private firms. Return on assets fell sharply and importing activity declined, with negative effects concentrated in manufacturing, while firms in strategic and natural resource sectors were largely unaffected. We also document lower electoral support for the incumbent coalition in more exposed municipalities. Overall, nationalization generated sizable and uneven economic costs with significant political consequences.
Subjects: 
nationalization
state-owned enterprises
firm performance
JEL: 
L33
D72
N36
Document Type: 
Working Paper

Files in This Item:
File
Size





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