TY - JOUR
T1 - Privatization and business groups
T2 - Evidence from the Chicago Boys in Chile: Privatization and business groups
AU - Aldunate, Felipe
AU - González, Felipe
AU - Prem, Mounu
AU - Urzúa, Francisco
PY - 2020
Y1 - 2020
N2 - 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.
AB - 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.
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U2 - 10.1016/j.eeh.2020.101355
DO - 10.1016/j.eeh.2020.101355
M3 - Research Article
AN - SCOPUS:85089584169
SN - 0014-4983
JO - Explorations in Economic History
JF - Explorations in Economic History
M1 - 101355
ER -