Returns to social capital among traders
Using data on agricultural traders in Madagascar, this paper shows that social capital has a large effect on efficiency. Better connected traders are shown to have significantly larger sales and gross margins than less connected traders after controlling for physical and human inputs. The analysis i...
| Main Authors: | , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
1998
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/161248 |
| _version_ | 1855530200825069568 |
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| author | Fafchamps, Marcel Minten, Bart |
| author_browse | Fafchamps, Marcel Minten, Bart |
| author_facet | Fafchamps, Marcel Minten, Bart |
| author_sort | Fafchamps, Marcel |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Using data on agricultural traders in Madagascar, this paper shows that social capital has a large effect on efficiency. Better connected traders are shown to have significantly larger sales and gross margins than less connected traders after controlling for physical and human inputs. The analysis indicates that three dimensions of social network capital should be distinguished: relationships with other traders, which help firms economize on transactions costs; relationships with individuals who can help in times of financial difficulties, which insure traders against liquidity risk; and family relationships, which reduce efficiency, possibly because of measurement error. Social network capital enables traders to deal with each other in a more trustworthy manner by granting and receiving credit, exchanging price information, and economizing on quality inspection. Schooling is correlated with the use of superior modes of transaction but needs to be complemented by social network capital. |
| format | Artículo preliminar |
| id | CGSpace161248 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 1998 |
| publishDateRange | 1998 |
| publishDateSort | 1998 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1612482025-11-06T06:43:24Z Returns to social capital among traders Fafchamps, Marcel Minten, Bart trade developing countries cooperative societies Using data on agricultural traders in Madagascar, this paper shows that social capital has a large effect on efficiency. Better connected traders are shown to have significantly larger sales and gross margins than less connected traders after controlling for physical and human inputs. The analysis indicates that three dimensions of social network capital should be distinguished: relationships with other traders, which help firms economize on transactions costs; relationships with individuals who can help in times of financial difficulties, which insure traders against liquidity risk; and family relationships, which reduce efficiency, possibly because of measurement error. Social network capital enables traders to deal with each other in a more trustworthy manner by granting and receiving credit, exchanging price information, and economizing on quality inspection. Schooling is correlated with the use of superior modes of transaction but needs to be complemented by social network capital. 1998 2024-11-21T09:54:25Z 2024-11-21T09:54:25Z Working Paper https://hdl.handle.net/10568/161248 en Open Access application/pdf International Food Policy Research Institute Fafchamps, Marcel; Minten, Bart. 1998. Returns to social capital among traders. MTID Discussion Paper 23. https://hdl.handle.net/10568/161248 |
| spellingShingle | trade developing countries cooperative societies Fafchamps, Marcel Minten, Bart Returns to social capital among traders |
| title | Returns to social capital among traders |
| title_full | Returns to social capital among traders |
| title_fullStr | Returns to social capital among traders |
| title_full_unstemmed | Returns to social capital among traders |
| title_short | Returns to social capital among traders |
| title_sort | returns to social capital among traders |
| topic | trade developing countries cooperative societies |
| url | https://hdl.handle.net/10568/161248 |
| work_keys_str_mv | AT fafchampsmarcel returnstosocialcapitalamongtraders AT mintenbart returnstosocialcapitalamongtraders |