Ethnicity and Networks in African Trade.

This paper investigates the role of ethnicity, religion, gender, and networks in domestic agricultural trade in Africa. Using a theoretical model of self-disciplining markets, we begin by demonstrating that statistical discrimination and networks can generate similar patterns of ethnic concentration...

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Egile nagusia: Fafchamps, M
Formatua: Journal article
Hizkuntza:English
Argitaratua: Berkley Electronic Press 2003
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author Fafchamps, M
author_facet Fafchamps, M
author_sort Fafchamps, M
collection OXFORD
description This paper investigates the role of ethnicity, religion, gender, and networks in domestic agricultural trade in Africa. Using a theoretical model of self-disciplining markets, we begin by demonstrating that statistical discrimination and networks can generate similar patterns of ethnic concentration. The model also predicts that traders who start with an ethnic or network advantage grow faster. We then test these ideas using original survey data collected in Benin, Malawi, and Madagascar. We find no evidence that members of a particular sex or ethnic group are more easily trusted by suppliers and trust clients more easily. In contrast, network effects have a strong and systematic effect on trust and information sharing. We also find some evidence that religion matters, but the effect is not due to discrimination or better networks. Ethnicity also has little effect on start-up networks and working capital but women accumulate working capital slower than men, including in Benin where women represent 80% of surveyed traders. Agricultural trade appears fairly open to all, irrespective of gender, ethnicity, or religion.
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spelling oxford-uuid:28258cea-428e-4b20-8e4c-51bbf3bbb3c82022-03-26T12:11:02ZEthnicity and Networks in African Trade.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:28258cea-428e-4b20-8e4c-51bbf3bbb3c8EnglishDepartment of Economics - ePrintsBerkley Electronic Press2003Fafchamps, MThis paper investigates the role of ethnicity, religion, gender, and networks in domestic agricultural trade in Africa. Using a theoretical model of self-disciplining markets, we begin by demonstrating that statistical discrimination and networks can generate similar patterns of ethnic concentration. The model also predicts that traders who start with an ethnic or network advantage grow faster. We then test these ideas using original survey data collected in Benin, Malawi, and Madagascar. We find no evidence that members of a particular sex or ethnic group are more easily trusted by suppliers and trust clients more easily. In contrast, network effects have a strong and systematic effect on trust and information sharing. We also find some evidence that religion matters, but the effect is not due to discrimination or better networks. Ethnicity also has little effect on start-up networks and working capital but women accumulate working capital slower than men, including in Benin where women represent 80% of surveyed traders. Agricultural trade appears fairly open to all, irrespective of gender, ethnicity, or religion.
spellingShingle Fafchamps, M
Ethnicity and Networks in African Trade.
title Ethnicity and Networks in African Trade.
title_full Ethnicity and Networks in African Trade.
title_fullStr Ethnicity and Networks in African Trade.
title_full_unstemmed Ethnicity and Networks in African Trade.
title_short Ethnicity and Networks in African Trade.
title_sort ethnicity and networks in african trade
work_keys_str_mv AT fafchampsm ethnicityandnetworksinafricantrade