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Ties configuration in entrepreneurs’ personal network and economic performances in African urban informal economy

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  • Jean-Philippe BERROU (GREThA-GRES)
  • François COMBARNOUS (GREThA-GRES)

Abstract

As to explore social networks influence in African informal economy, this paper fits in the conceptual framework of reticular embeddedness. By going into the analyse of ties strength, our purpose is to question the real influence of ties content. We use a recent original dataset to evaluate how entrepreneurs’ networks influence their activities economic outcomes. ‘Multiple name generators’ method provides a vast amount of information about ties content, which can be treated by factor analysis to describe and categorize networks. Finally, we show that not only business ties but the particular configuration of ties strength in networks improve informal earnings.

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Bibliographic Info

Paper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES with number 2008-19.

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Date of creation: 2008
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Handle: RePEc:grs:wpegrs:2008-19

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Web page: http://gres.u-bordeaux4.fr/
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Keywords: Informal economy; embeddedness; social networks; informal earnings;

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  1. Abigail M. Barr, 2002. "The Functional Diversity and Spillover Effects of Social Capital," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(1), pages 90-113, March.
  2. Brautigam, Deborah, 1997. "Substituting for the state: Institutions and industrial development in eastern Nigeria," World Development, Elsevier, vol. 25(7), pages 1063-1080, July.
  3. Fafchamps, Marcel, 2000. "Ethnicity and credit in African manufacturing," Journal of Development Economics, Elsevier, vol. 61(1), pages 205-235, February.
  4. Kuépié, Mathias & Nordman, Christophe Jalil & Roubaud, François, 2006. "Education and Labour Market Outcomes in Sub-Saharan West Africa," Economics Papers from University Paris Dauphine 123456789/4353, Paris Dauphine University.
  5. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Cathy Patillo & Mans Soderbom & Francis Teal & Albert Zeufack, 1999. "Contract Flexibility and Dispute Resolution in African Manufacturing," CSAE Working Paper Series 1999-20, Centre for the Study of African Economies, University of Oxford.
  6. Fafchamps, Marcel & Minten, Bart, 1998. "Relationships and traders in Madagascar," MTID discussion papers 24, International Food Policy Research Institute (IFPRI).
  7. Gindling, T.H. & Terrell, Katherine, 2005. "The effect of minimum wages on actual wages in formal and informal sectors in Costa Rica," World Development, Elsevier, vol. 33(11), pages 1905-1921, November.
  8. Marcel Fafchamps & Bart Minten, 2000. "Returns to Social Network Capital among Traders," Development Working Papers 145, Centro Studi Luca d\'Agliano, University of Milano.
  9. Barr, Abigail, 2000. "Social Capital and Technical Information Flows in the Ghanaian Manufacturing Sector," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 539-59, July.
  10. Funkhouser, Edward, 1996. "The urban informal sector in Central America: Household survey evidence," World Development, Elsevier, vol. 24(11), pages 1737-1751, November.
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