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- W2538949199 abstract "A theme of this study is that the informal sector in West Africa stems largely from the institutional environment and the incentives firms face (chapter 6). In particular, weak and corrupt state administrations fail to provide the foundations of formal markets such as property rights, contract enforcement, and information dissemination. An additional consideration, however, is that informal business operations are perpetuated by informal institutions that substitute for state provision of public goods. Informal institutions are pervasive in all economies, but they are particularly significant in developing countries (Casson, Guista, and Kambhampati 2009). Ethnic and social kinship groups are an especially significant informal institution, providing a set of norms of conduct and enforcement mechanisms that substitute for formal rules and regulations. Ethnic and social networks are a form of “social capital” (Barron, Field, and Schuller 2000), which can have positive as well as negative effects on economic development. On the plus side, social networks create bonds of trust that enable contract fulfillment, access to financing, and information exchange without documentation or official involvement (Putnam 1995; Fafchamps 2004). Kinship groups play a particularly important part in international trade, helping to overcome transaction costs created by lack of information and differences in business practices across countries (Rauch 2001). Kinship networks have a major role in informal cross-border trading in West Africa, as described further below and in the following chapter. On the negative side, however, social capital in general and informal networks in particular can be exclusionary, accepting or even promoting antisocial behavior and violation of the rules and norms in the formal economy (for example, Adhikari and Goldey 2009; Field 2003; Portes" @default.
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- W2538949199 date "2012-01-01" @default.
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- W2538949199 title "Informal Trading Networks In West Africa: The Mourides Of Senegal/The Gambia And The Yoruba Of Benin/Nigeria" @default.
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