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Missing links, missing markets: Internal exchanges, reciprocity and external connections in the economic networks of Gambian villages

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  • Jaimovich, Dany

Abstract

A unique dataset of social and economic networks collected in 60 rural Gambian villages is used to study the ways in which households with links outside the village (that are considered as a proxy for market connections) behave in the locally available exchange networks for land, labor, input and credit. Using measures gleaned from the social network analysis literature, the econometric results at both household and link (dyadic) level provide evidence of: (i) substitutability between internal and external links, and (ii) substitutability between internal reciprocation and external links. These findings provide support for the transformation process of primitive economies described in a long tradition of anthropological work as well as recent theoretical models.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44080.

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Date of creation: Jan 2013
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Handle: RePEc:pra:mprapa:44080

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Keywords: Social Networks; Missing markets; Gift economy; Economic Anthropology; West Africa;

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  1. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2006. "Robust Inference with Multi-way Clustering," NBER Technical Working Papers 0327, National Bureau of Economic Research, Inc.
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  7. Jaimovich, Dany, 2011. "Macrostructure and microstructure: Evidence from overlapping village networks in The Gambia," MPRA Paper 38932, University Library of Munich, Germany.
  8. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
  9. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  10. Kranton, Rachel E, 1996. "Reciprocal Exchange: A Self-Sustaining System," American Economic Review, American Economic Association, American Economic Association, vol. 86(4), pages 830-51, September.
  11. Malinowski, Bronislaw, 1921. "The Primitive Economics of the Trobriand Islanders," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, McMaster University Archive for the History of Economic Thought, vol. 31, pages 1-16.
  12. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, StataCorp LP, vol. 4(3), pages 290-311, September.
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