Banking reform and the financing of firm investment : an empirical analysis of the Chilean experience, 1983 - 92

The article investigates whether the Chilean banking reforms of the 80s have contributed to reducing market imperfections in the financial markets in the late 80s and 90s. Patterns of the investment and its finance for different types of firms are studied. The conclusion is that those specific reforms, aimed at reducing intraconglomerate lending, seem to have been successful, since access of non-conglomerate firms has increased, indicating a reduction of existing market imperfections for such firms. (DSE/DÜI)