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Business, Brokers and Borders: The Structure of West African Trade Networks

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  • Olivier Walther

    (Department of Border Region Studies, University of Southern Denmark)

Abstract

Using social network analysis, this paper studies the structure of trade networks that developed across West African borders. The first part aims to understand the centralization of cross-border trade networks. In a business environment where transaction costs are extremely high, we find that decentralized networks are well adapted to the various uncertainties induced by long-distance trade. We also study the trade-offs faced by traders between embeddedness and brokerage and find that long-distance trade relies both on the trust and cooperation shared among local traders, and on the distant ties developed with foreign partners from a different origin, religion or culture. In the second part, we study the spatial structure of trade networks and the influence of national borders on the development of social ties. The paper shows that the spatial form of trade networks is constrained by the historical origin of the traders engaged in cross-border activities. In those markets where trade is recent and where most of the traders are not native of the region, national borders are likely to exert a greater influence than in those regions where trade has pre-colonial roots.

Suggested Citation

  • Olivier Walther, 2014. "Business, Brokers and Borders: The Structure of West African Trade Networks," Working Papers 1, University of Southern Denmark, Centre for Border Region Studies.
  • Handle: RePEc:sdn:wpaper:1
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    References listed on IDEAS

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    Cited by:

    1. Sami Bensassi & Joachim Jarreau, 2019. "Price discrimination in bribe payments: Evidence from informal cross-border trade in West Africa," Post-Print hal-02390008, HAL.
    2. Kubo, Koji, 2016. "Myanmar's cross-border trade with China : beyond informal trade," IDE Discussion Papers 625, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Bensassi, Sami & Jarreau, Joachim, 2019. "Price discrimination in bribe payments: Evidence from informal cross-border trade in West Africa," World Development, Elsevier, vol. 122(C), pages 462-480.
    4. Armelle Choplin, 2020. "Cementing Africa: Cement flows and city-making along the West African corridor (Accra, Lomé, Cotonou, Lagos)," Urban Studies, Urban Studies Journal Limited, vol. 57(9), pages 1977-1993, July.
    5. Lampel, Linda, 2020. "Value capture and distribution in second-hand clothing trade: The role of charity discourses, commercial strategies and economic and political contexts," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 72, number 72.
    6. Walther, Olivier J. & Tenikue, Michel & Trémolières, Marie, 2019. "Economic performance, gender and social networks in West African food systems," World Development, Elsevier, vol. 124(C), pages 1-1.
    7. Jacqueline M. Klopp & Melissa Trimble & Eleanor Wiseman, 2022. "Corruption, gender, and small‐scale cross‐border trade in East Africa: A review," Development Policy Review, Overseas Development Institute, vol. 40(5), September.
    8. Olivier Walther, 2015. "Social Network Analysis and informal trade," Working Papers 4, University of Southern Denmark, Centre for Border Region Studies.
    9. Walther, Olivier J. & Dambo, Lawali & Koné, Moustapha & van Eupen, Michiel, 2020. "Mapping travel time to assess accessibility in West Africa: The role of borders, checkpoints and road conditions," Journal of Transport Geography, Elsevier, vol. 82(C).

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    More about this item

    Keywords

    Social networks; trade; border markets; brokerage; West Africa;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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