Financial Market Liberalization in Chile, 1973-1982

Preface Acknowledgements 1. Introduction 2. The Theory of Financial Liberalization in Less Developed Countries: A Review of the Literature 2.1. Introduction 2.2. The Financially Repressed Economy 2.3. Policy Prescriptions 2.4. Assumptions of the Repressed Paradigm 2.5. Summary and Final Remarks 3. Chilean Economic Reforms and Their Impact on the Financial Sector 1973-1982 3.1. Market Deregulation and Shock Treatment September 1973-June 1976 3.2. Curbing Cost-Push Factors and Expectations: June 1976-June 1979 3.3. Global Monetarism: June 1979-June 1982 3.4. 1982 Crisis 4. Financial Reform and the Manufacturing Industry: 1977-82 4.1. Introduction 4.2. The Evolution of the Industrial Sector During the 1975-1982 Period 4.3. Financial Behavior of Manufacturing Firms Pre and Post Financial Liberalization 4.4. Financial Behavior of a Sample of Manufacturing Firms After Surviving the 1977-82 Period 4.5. Financial Behavior of a Sample of Manufacturing Firms After Going Bankrupt During the 1977-1982 Period 4.6. Summary and Conclusions Appendix I Appendix II 5. Capital Market Segmentation and Financial Liberalization 5.1. Introduction 5.2. The Liberalized Financial Market 5.3. Financial Market Segmentation 5.4. Financial Market Segmentation, Profitability and Financial Adjustment 5.5. Conclusions Appendix 6. Trade Liberalization and Financial Reform 6.1. Introduction 6.2. Commercial Openness and its Effects on the Industrial Sector 6.3. The Effects of Trade and Financial Reforms on Industrial Firms’ Financial Behavior 6.4. Conclusions 7. Financial Behavior of Companies in a Liberalized Capital Market: Some Case Studies 7.1. Introduction 7.2. Methodology 7.3. Results 7.4. Final Remarks Appendix 8. Firms’ Financial Behavior in a Liberalized Capital Market: A Formal Approach 8.1. Introduction 8.2. Firms’ Financial Behavior in a Liberalized Capital Market 8.3. Concluding Remarks 9. Financial Liberalization in Chile: What Can We Learn? References