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Privatization and business groups: Evidence from the Chicago Boys in Chile

Aldunate, F., González, F., Prem, M. and Urzúa, F. ORCID: 0000-0003-4681-7684 (2020). Privatization and business groups: Evidence from the Chicago Boys in Chile. Explorations in Economic History, 101355.. doi: 10.1016/j.eeh.2020.101355

Abstract

Business groups are the predominant organizational structure in modern Chile. This article tests the long-standing hypothesis that the privatization reform implemented by the “Chicago Boys” during the Pinochet regime facilitated the creation of new groups and hence the renovation of the country’s elites. Using new data we find that firms sold during this privatization later became part of new business groups, process aided by an economic crisis that debilitated traditional elites. Moreover, some firms were bought by Pinochet’s allies and were later used as providers of capital within groups. We conclude that privatizations can empower outsiders to replace business elites.

Publication Type: Article
Additional Information: © 2020 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/.
Publisher Keywords: Government, Firms, Groups, Privatization
Subjects: F History United States, Canada, Latin America > F1201 Latin America (General)
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Departments: Business School > Finance
Date Deposited: 17 Aug 2020 11:21
URI: https://openaccess.city.ac.uk/id/eprint/24761
[img] Text - Accepted Version
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