IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61822.html
   My bibliography  Save this paper

Ethnic Networks and Enterprise Credit: The Serahules of The Gambia

Author

Listed:
  • Gajigo, Ousman
  • Foltz, Jeremy D.

Abstract

This work analyzes the effects of ethnic heterogeneity on credit and entrepreneurship in The Gambia. We develop a model of credit transactions based on ethnic density, which shows that where formal credit markets fail denser ethnic groups will have better access to credit. This work places a special emphasis on the Serahule ethnic group, which is ethnically dense and entrepreneurially successful. Our results show that Serahule-owned enterprises are indeed larger and more profitable. Furthermore, their marginal rate of return of capital is significantly lower than that of enterprises owned by other ethnicities, as one would expect with lower credit constraints.

Suggested Citation

  • Gajigo, Ousman & Foltz, Jeremy D., 2010. "Ethnic Networks and Enterprise Credit: The Serahules of The Gambia," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61822, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61822
    DOI: 10.22004/ag.econ.61822
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61822/files/serahule-credit_AAEA.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61822?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Returns to Capital in Microenterprises: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 423-423.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean‐Louis Arcand & Dany Jaimovich, 2019. "Does ethnic diversity decrease economic interactions? Evidence from exchange networks in rural Gambia," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(2), pages 327-353, February.
    2. Tanika Chakraborty & Anirban Mukherjee & Sarani Saha, 2015. "Court-ship, kinship and business: a study on the interaction between the formal and the informal institutions and its effect on entrepreneurship," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Catherine Wolfram & Orie Shelef & Paul Gertler, 2012. "How Will Energy Demand Develop in the Developing World?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 119-138, Winter.
    2. Giambra, Samuele & McKenzie, David, 2021. "Self-employment and migration," World Development, Elsevier, vol. 141(C).
    3. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    4. Michael Grimm & Jens Krüger & Jann Lay, 2011. "Barriers To Entry And Returns To Capital In Informal Activities: Evidence From Sub‐Saharan Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57, pages 27-53, May.
    5. Pascaline Dupas & Sarah Green & Anthony Keats & Jonathan Robinson, 2014. "Challenges in Banking the Rural Poor: Evidence from Kenya's Western Province," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 63-101, National Bureau of Economic Research, Inc.
    6. Stoeffler, Quentin & Mills, Bradford, 2014. "Households’ investments in durable and productive assets in Niger: quasi-experimental evidences from a cash transfer project," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170212, Agricultural and Applied Economics Association.
    7. Blattman, Christopher & Fiala, Nathan & Martinez, Sebastian, 2011. "Employment generation in rural Africa : mid-term results from an experimental evaluation of the Youth Opportunities Program in Northern Uganda," Social Protection Discussion Papers and Notes 66523, The World Bank.
    8. repec:dau:papers:123456789/7079 is not listed on IDEAS
    9. Baylis, Kathy & Mallory, Mindy & Songsermsawas, Tisorn, 2015. "Effects of credit and market access on farm gate prices in India," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205434, Agricultural and Applied Economics Association.
    10. Renate Strobl & Conny Wunsch, 2021. "Risky choices and solidarity: disentangling different behavioural channels," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1185-1214, December.
    11. Kjetil Bjorvatn & Alexander W. Cappelen & Linda Helgesson Sekei & Erik Ø. Sørensen & Bertil Tungodden, 2020. "Teaching Through Television: Experimental Evidence on Entrepreneurship Education in Tanzania," Management Science, INFORMS, vol. 66(6), pages 2308-2325, June.
    12. Catia Batista & Sandra Sequeira & Pedro C. Vicente, 2022. "Closing the Gender Profit Gap?," Management Science, INFORMS, vol. 68(12), pages 8553-8567, December.
    13. Caio Piza & Tulio Antonio Cravo & Linnet Taylor & Lauro Gonzalez & Isabel Musse & Isabela Furtado & Ana C. Sierra & Samer Abdelnour, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 12(1), pages 1-167.
    14. Mamedov, Arseny (Мамедов, Арсений) & Hudko, E. (Худько, Е.) & Belev, Sergei (Белев, Сергей) & Moguchev, Nikita Sergeevich (Могучев, Никита Сергеевич), 2016. "Comparative Analysis of the Effectiveness of Individual Instruments of State Investment Policy [Сравнительный Анализ Эффективности Применения Отдельных Инструментов Государственной Инвестиционной П," Working Papers 3052, Russian Presidential Academy of National Economy and Public Administration.
    15. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2018. "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 635-687.
    16. Antonia Grohmann & Lukas Menkhoff & Helke Seitz, 2022. "The Effect of Personalized Feedback on Small Enterprises’ Finances in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1197-1227.
    17. Galiani, Sebastian & Meléndez, Marcela & Ahumada, Camila Navajas, 2017. "On the effect of the costs of operating formally: New experimental evidence," Labour Economics, Elsevier, vol. 45(C), pages 143-157.
    18. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
    19. Dehejia, Rajeev & Montgomery, Heather & Morduch, Jonathan, 2012. "Do interest rates matter? Credit demand in the Dhaka slums," Journal of Development Economics, Elsevier, vol. 97(2), pages 437-449.
    20. Vittorio Bassi & Raffaela Muoio & Tommaso Porzio & Ritwika Sen & Esau Tugume, 2022. "Achieving Scale Collectively," Econometrica, Econometric Society, vol. 90(6), pages 2937-2978, November.
    21. Abdelkrim Araar & Yesuf Mohammednur Awel & Jonse Bane Boka & Hiywot Menker & Ajebush Shafi & Eleni Yitbarek & Mulatu Zerihun, 2019. "Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia," Working Papers PMMA 2019-13, PEP-PMMA.

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61822. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.