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Inclusive and Exclusive Social Capital in the Small-Firm Sector in Developing Countries

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Author Info
Kurt Annen

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Abstract

This article explores the role of social capital created by social network membership in the small-firm sector in developing countries. Some empirical studies find that social capital hampers economic performance by creating market segmentation and inducing rent-seeking activities. Other studies conclude that social capital is an important prerequisite for productive interaction among small firms. This paper develops a concept of social capital governance which distinguishes between inclusive and exclusive social capital. It argues that inclusive social capital furthers economic performance while exclusive social capital may not. Two case studies are included.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 157 (2001)
Issue (Month): 2 (June)
Pages: 319-
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200106)157:2_319:iaesci_2.0.tx_2-4

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Keywords:

Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

Cited by:
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  1. Giovannetti, E. & Neuhoff, K. & Spagnolo, G., 2005. "Agglomeration in Internet Co-operation Peering Agreements," Cambridge Working Papers in Economics 0505, Faculty of Economics, University of Cambridge. [Downloadable!]
  2. Kurt Annen, 2005. "Economic Returns to Social Capital in the Urban Informal Sector in Developing Countries: Micro Evidence from Small Textile Producers in Bolivia," Development and Comp Systems 0511011, EconWPA. [Downloadable!]
Statistics
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This page was last updated on 2008-6-19.

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