Social networks and factor markets: panel data evidence from Ethiopia
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Social networks and factor markets : panel data evidence from Ethiopia. / Abay, Kibrom Araya; Kahsay, Goytom Abraha; Berhane, Guush.
I: Journal of Development Studies, Bind 54, Nr. 1, 2018, s. 174-190.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Social networks and factor markets
T2 - panel data evidence from Ethiopia
AU - Abay, Kibrom Araya
AU - Kahsay, Goytom Abraha
AU - Berhane, Guush
PY - 2018
Y1 - 2018
N2 - We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use a detailed longitudinal household survey data and employ a fixed effects estimation to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions. Our findings also hint that iddir networks may crowd-out borrowing from local moneylenders (locally referred as ‘Arata Abedari’), a relatively expensive credit source. These results suggest that non-market institutions can play crucial roles in facilitating market transactions.
AB - We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use a detailed longitudinal household survey data and employ a fixed effects estimation to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions. Our findings also hint that iddir networks may crowd-out borrowing from local moneylenders (locally referred as ‘Arata Abedari’), a relatively expensive credit source. These results suggest that non-market institutions can play crucial roles in facilitating market transactions.
KW - Faculty of Social Sciences
U2 - 10.1080/00220388.2017.1288224
DO - 10.1080/00220388.2017.1288224
M3 - Journal article
VL - 54
SP - 174
EP - 190
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 1
ER -
ID: 222748633