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- W1750245416 abstract "This paper investigates the rationale for statistical discrimination and networks effects in the allocation of supplier credit and examines the role they may play in favoring market participation and, hence, the emergence and persistence of ethnicity homogenous business groups. It shows that members of a successful business group may rationally choose not to grant trade credit to members of other ethnic communities if the latter are, on average, less experienced of if they are not part of business reputation network. If a community manages to establish a dominant position in a particular activity, this dominance may persist indefinitely. Using case study data on trade credit among manufacturing firms in Kenya and Zimbabwe, evidence shows that blacks are disadvantaged in the attribution of supplier credit. Statistical discrimination and network effects seem to play a role in explaining ethnic bias." @default.
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- W1750245416 date "1998-02-01" @default.
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- W1750245416 title "Ethnicity and markets : supplier credit in African manufacturing" @default.
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