Regional split and business dynamics: quasi-experimental evidence from the creation of the Ñuble region in Chile
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This article examines whether the creation of the Ñuble region altered the regional business-stock trajectory. Using annual data from the Central Bank of Chile for 2005-2024, the study estimates a difference-in-differences model with region and year fixed effects, comparing Ñuble with Maule and La Araucanía. The DiD coefficient is -0.035, consistent with approximately 3.5% lower relative business-stock growth in the post-reform period. The event-study does not reveal systematic divergent pre-trends and suggests a gradual negative gap from 2021 onward. The findings indicate that territorial reforms may generate transition costs in the institutional interfaces linking the state to local firms.
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Horizontes Empresariales se distribuye bajo licencia Creative Commons Atribución 4.0 Internacional (CC BY 4.0).
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