Court-ship, kinship and business : a study on the interaction between the formal and the informal institutions and its effect on entrepreneurship
Date
2015-05-26
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Publisher
Springer
Abstract
The study looks at the role of networks in credit provisioning. It examines how the interaction between the formal court system and informal loan networks affect a household’s decision to start a business. Effective contract enforcement is seen to be key to the process of economic development. Network membership, often characterized by caste or ethnicity in India, may work in both positive and negative ways. The paper models interactions between these two types of institutions and their effect on prospective business start-ups. Findings show that in capital poor populations, less efficient informal institutions are crucial for micro-entrepreneurs.
Description
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Journal Article (peer-reviewed)
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Keywords
CASTES, OCCUPATIONAL MOBILITY, SOCIAL CLASSES, ENTREPRENEURSHIP, JUDICIAL SYSTEM, INSTITUTIONAL CHANGE, CIVIL LAW, MATHEMATICAL MODELS, CONTRACTS, ACCESS TO JUSTICE, INDIA, SOUTH ASIA