IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/bhwk7_v1.html
   My bibliography  Save this paper

Make the Economy Scream? U.S. Banks and Foreign Firms During the Cold War

Author

Listed:
  • Aldunate, Felipe
  • Gonzalez, Felipe

    (Pontificia Universidad Católica de Chile)

  • Prem, Mounu

Abstract

U.S. foreign policies during the Cold War are well documented, but less is known about the role of non-state actors and their impact on foreign firms. We use novel firm-level data from Chile to document a substantial decrease in financial relations with U.S. banks after socialist Salvador Allende took office in 1970. An analysis of links with banks from other countries reveals that part of the decrease was related to credit risk and another was specific to the U.S. Financial data from business reports and the stock market suggest that firms were mostly unaffected by the destruction of links with U.S. banks. Substitution of financial relations towards state-owned banks appears to be the key mechanism to explain these findings.

Suggested Citation

  • Aldunate, Felipe & Gonzalez, Felipe & Prem, Mounu, 2021. "Make the Economy Scream? U.S. Banks and Foreign Firms During the Cold War," SocArXiv bhwk7_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:bhwk7_v1
    DOI: 10.31219/osf.io/bhwk7_v1
    as

    Download full text from publisher

    File URL: https://osf.io/download/6178383adca336009491f419/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/bhwk7_v1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:bhwk7_v1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.