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The Nature and Structure of Trade-Financial Networks: Evidence from the New Zealand Pastoral Sector

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  • Simon Ville
  • Grant Fleming

Abstract

Recent work on business organisation has shown how a network based upon trade can evolve into a more widely embracing trade and financial network. A growing network may also engender leaders who intermediate to reduce communication costs. This paper provides an historically based variation on such hypothesised network structures by showing that trade and finance can exist together as part of a network from the outset. New Zealand pastoral agent firms recognised from very early on that regular trading transactions between agent and farmer generated trust, reputational effects, and mutual information exchange vital for successful lending and the provision of pastoral services. Agents, and sometimes other functional groups, served as intermediating leaders as the network grew in size and complexity.

Suggested Citation

  • Simon Ville & Grant Fleming, 2000. "The Nature and Structure of Trade-Financial Networks: Evidence from the New Zealand Pastoral Sector," Business History, Taylor & Francis Journals, vol. 42(1), pages 41-58.
  • Handle: RePEc:taf:bushst:v:42:y:2000:i:1:p:41-58
    DOI: 10.1080/00076790000000174
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    Cited by:

    1. Monica Keneley, 2020. "Reflections on the Business History Tradition: Where has it Come from and Where is it Going to?," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 60(3), pages 282-300, November.
    2. Mark J. Garmaise & Tobias J. Moskowitz, 2002. "Informal Financial Networks: Theory and Evidence," NBER Working Papers 8874, National Bureau of Economic Research, Inc.

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