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


  • Jean-Philippe BERROU (GREThA-GRES)


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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  • Jean-Philippe BERROU (GREThA-GRES) & François COMBARNOUS (GREThA-GRES), 2008. "Ties configuration in entrepreneurs’ personal network and economic performances in African urban informal economy," Cahiers du GRES (2002-2009) 2008-19, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2008-19

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    References listed on IDEAS

    1. Funkhouser, Edward, 1996. "The urban informal sector in Central America: Household survey evidence," World Development, Elsevier, vol. 24(11), pages 1737-1751, November.
    2. 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.
    3. Marcel Fafchamps, 2002. "Returns to social network capital among traders," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 173-206, April.
    4. Marcel Fafchamps & Bart Minten, 1999. "Relationships and traders in Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 1-35.
    5. Mathias Kuepie & Christophe Nordman & François Roubaud, 2006. "Education and Labour Market Outcomes in Sub-Saharan West Africa," Working Papers DT/2006/16, DIAL (Développement, Institutions et Mondialisation).
    6. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Cathy Patillo & Måns Soderbom & Francis Teal & Albert Zeufack, 2000. "Contract flexibility and dispute resolution in African manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 36(4), pages 1-37.
    7. Fafchamps, Marcel, 2000. "Ethnicity and credit in African manufacturing," Journal of Development Economics, Elsevier, vol. 61(1), pages 205-235, February.
    8. 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.
    9. Brautigam, Deborah, 1997. "Substituting for the state: Institutions and industrial development in eastern Nigeria," World Development, Elsevier, vol. 25(7), pages 1063-1080, July.
    10. Barr, Abigail, 2000. "Social Capital and Technical Information Flows in the Ghanaian Manufacturing Sector," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 539-559, July.
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    More about this item


    Informal economy; embeddedness; social networks; informal earnings;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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