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Social Networks in Ghana

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Author Info
Christopher Udry () (Economic Growth Center, Yale University)
Timothy G. Conley

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Abstract

In this chapter we examine social networks among farmers in a developing country. We use detailed data on economic activities and social interactions between people living in four study villages in Ghana. It is clear that economic development in this region is being shaped by the networks of information, capital and influence that permeate these communities. This chapter explores the determinants of these important economic networks. We first describe the patterns of information, capital, labor and land transaction connections that are apparent in these villages. We then discuss the interconnections between the various economic networks. We relate the functional economic networks to more fundamental social relationships between people in a reduced form analysis. Finally, we propose an equilibrium model of multi-dimensional network formation that can provide a foundation for further data collection and empirical research.

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Publisher Info
Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 888.

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Length: 34 pages
Date of creation: May 2004
Date of revision:
Handle: RePEc:egc:wpaper:888

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Related research
Keywords: Endogenous Networks; Informal Credit; Social Learning;

Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Timothy G. Conley & Christopher R. Udry, 2005. "Learning about a new technology: pineapple in Ghana," Proceedings, Federal Reserve Bank of San Francisco. [Downloadable!]
    Other versions:
  2. Fafchamps, Marcel & Minten, Bart, 1998. "Relationships and traders in Madagascar," MTID discussion papers 24, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Fafchamps, Marcel, 2000. "Ethnicity and credit in African manufacturing," Journal of Development Economics, Elsevier, vol. 61(1), pages 205-235, February. [Downloadable!] (restricted)
  4. Bolton, Patrick & Dewatripont, Mathias, 1994. "The Firm as a Communication Network," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 809-39, November. [Downloadable!] (restricted)
  5. Elie Tamer, 2003. "Incomplete Simultaneous Discrete Response Model with Multiple Equilibria," Review of Economic Studies, Blackwell Publishing, vol. 70(1), pages 147-165, January.
  6. Conley, Timothy G. & Topa, Giorgio, 2007. "Estimating dynamic local interactions models," Journal of Econometrics, Elsevier, vol. 140(1), pages 282-303, September. [Downloadable!] (restricted)
  7. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Blackwell Publishing, vol. 47(1), pages 225-38, January. [Downloadable!] (restricted)
  8. Conley, Timothy & Udry, Christopher, 2001. " Social Learning through Networks: The Adoption of New Agricultural Technologies in Ghana," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(3), pages 668-73, August. [Downloadable!] (restricted)
  9. Jovanovic, Boyan, 1989. "Observable Implications of Models with Multiple Equilibria," Econometrica, Econometric Society, vol. 57(6), pages 1431-37, November. [Downloadable!] (restricted)
    Other versions:
  10. Economides, Nicholas, 1996. "The economics of networks," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 673-699, October. [Downloadable!] (restricted)
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  11. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October. [Downloadable!] (restricted)
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  12. Ligon, Ethan, 1998. "Risk Sharing and Information in Village Economics," Review of Economic Studies, Blackwell Publishing, vol. 65(4), pages 847-64, October. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Margherita Comola, 2008. "The network structure of informal arrangements: Evidence from rural Tanzania," PSE Working Papers 2008-74, PSE (Ecole normale supérieure). [Downloadable!]
  2. Jellal, Mohamed & Zenou, Yves, 2005. "Ethnic Diversity, Market Structure and Risk Sharing in Developing Countries," CEPR Discussion Papers 5366, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Pramila Krishnan & Emanuela Sciubba, 2006. "Links and Architecture in Village Networks," Birkbeck Working Papers in Economics and Finance 0614, Birkbeck, School of Economics, Mathematics & Statistics. [Downloadable!]
    Other versions:
  4. Schindler, Kati, 2006. "Credit for what? Informal credit as a coping strategy of market women in northern Ghana," Proceedings of the German Development Economics Conference, Berlin 2006 24, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
    Other versions:
  5. Krishnan, P. & Sciubba, E., 2004. "Links and Architecture in Village Networks (previously: Endogenous Network Formation and Informal Institutions in Village Economies)," Cambridge Working Papers in Economics 0462, Faculty of Economics, University of Cambridge. [Downloadable!]
  6. Santos, Paulo & Barrett, Christopher B., 2006. "Informal Insurance in the Presence of Poverty Traps: Evidence from Southern Ethiopia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25487, International Association of Agricultural Economists. [Downloadable!]
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