1932

Abstract

Social networks function as an important safety net in developing countries, which often lack formal financial instruments. Such networks are also an important source of information in developing countries with relatively low access to the Internet and literacy rates. We review the empirical literature that uses explicit social network data collected in developing countries. We focus on social networks as conduits for both monetary transfers and information. We also briefly discuss the network-formation literature and comment on data collection strategies, mentioning some areas we believe to be especially ripe for future study.

Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-100814-125123
2015-10-05
2024-06-17
Loading full text...

Full text loading...

/deliver/fulltext/resource/7/1/annurev-resource-100814-125123.html?itemId=/content/journals/10.1146/annurev-resource-100814-125123&mimeType=html&fmt=ahah

Literature Cited

  1. Advani A, Malde B. 2014. Empirical methods for networks data: social effects, network formation and measurement error. Unpubl. Manuscr.
  2. Alatas V, Banerjee A, Chandrasekhar AG, Hanna R, Olken BA. 2014. Network structure and the aggregation of information: theory and evidence from Indonesia. Unpubl. Manuscr.
  3. Ambrus A, Chandrasekhar AG, Elliott M. 2014a. Social investments, informal risk sharing, and inequality. Unpubl. Manuscr.
  4. Ambrus A, Möbius M, Szeidl A. 2014b. Consumption risk-sharing in social networks. Am. Econ. Rev. 104:149–82 [Google Scholar]
  5. Angelucci M, De Giorgi G, Rasul I. 2014. Resource pooling within family networks: insurance and investment. Unpubl. Manuscr.
  6. Antoninis M. 2006. The wage effects from the use of personal contacts as hiring channels. J. Econ. Behav. Organ. 59:133–46 [Google Scholar]
  7. Apicella CL, Marlowe FW, Fowler JH, Christakis NA. 2012. Social networks and cooperation in hunter-gatherers. Nature 481:497–501 [Google Scholar]
  8. Attanasio O, Barr A, Cardenas JC, Genicot G, Meghir C. 2012. Risk pooling, risk preferences, and social networks. Am. Econ. J. Appl. Econ. 4:134–67 [Google Scholar]
  9. Bandiera O, Rasul I. 2006. Social networks and technology adoption in northern Mozambique. Econ. J. 116:869–902 [Google Scholar]
  10. Banerjee A, Chandrasekhar AG, Duflo E, Jackson MO. 2013. The diffusion of microfinance. Science 341:1236498 [Google Scholar]
  11. Banerjee A, Chandrasekhar AG, Duflo E, Jackson MO. 2014. Gossip: identifying central individuals in a social network. Unpubl. Manuscr.
  12. Banerjee AV, Duflo E. 2007. The economic lives of the poor. J. Econ. Perspect. 21:141–68 [Google Scholar]
  13. Barr A, Dekker M, Fafchamps M. 2015. The formation of community-based organizations: an analysis of a quasi-experiment in Zimbabwe. World Dev 66:131–53 [Google Scholar]
  14. Barr A, Genicot G. 2008. Risk sharing, commitment, and information: an experimental analysis. J. Eur. Econ. Assoc. 6:1151–85 [Google Scholar]
  15. Batista C, Silverman D, Yang D. 2014. Directed giving: evidence from an inter-household transfer experiment. Unpubl. Manuscr.
  16. Beaman L, BenYishay A, Magruder J, Mobarak AM. 2014. Can network theory based targeting increase technology adoption? Unpubl. Manuscr.
  17. Beaman L, Keleher N, Magruder J. 2013. Do job networks disadvantage women? Evidence from a recruitment experiment in Malawi. Unpubl. Manuscr.
  18. Beaman L, Magruder J. 2012. Who gets the job referral? Evidence from a social networks experiment. Am. Econ. Rev. 102:3574–93 [Google Scholar]
  19. Beaman LA. 2012. Social networks and the dynamics of labour market outcomes: evidence from refugees resettled in the US. Rev. Econ. Stud. 79:128–61 [Google Scholar]
  20. Behrman JR, Kohler HP, Watkins SC. 2002. Social networks and changes in contraceptive use over time: evidence from a longitudinal study in rural Kenya. Demography 39:713–38 [Google Scholar]
  21. Benhabib J, Bisin A, Jackson MO. 2011. Handbook of Social Economics, Vol. 1B. New York: Elsevier
  22. BenYishay A, Mobarak AM. 2014. Social learning and communication. Unpubl. Manuscr.
  23. Binzel C, Fehr D. 2013. Giving and sorting among friends: evidence from a lab-in-the-field experiment. Econ. Lett. 121:214–17 [Google Scholar]
  24. Björkegren D. 2014. The adoption of network goods: evidence from the spread of mobile phones in Rwanda. Unpubl. Manuscr.
  25. Bloch F, Genicot G, Ray D. 2008. Informal insurance in social networks. J. Econ. Theory 143:36–58 [Google Scholar]
  26. Blumenstock J, Eagle N, Fafchamps M. 2014. Risk sharing and mobile phones: evidence in the aftermath of natural disasters. Unpubl. Manuscr.
  27. Boahene K, Snijders TAB, Folmer H. 1999. An integrated socioeconomic analysis of innovation adoption: the case of hybrid cocoa in Ghana. J. Policy Model. 21:167–84 [Google Scholar]
  28. Borgatti SP. 2005. Centrality and network flow. Soc. Networks 27:55–71 [Google Scholar]
  29. Borgatti SP, Carley KM, Krackhardt D. 2006. On the robustness of centrality measures under conditions of imperfect data. Soc. Networks 28:124–36 [Google Scholar]
  30. Bramoullé Y, Djebbari H, Fortin B. 2009. Identification of peer effects through social networks. J. Econom. 150:41–55 [Google Scholar]
  31. Bramoullé Y, Kranton R. 2005. Risk-sharing networks. J. Econ. Behav. Organ. 64:275–94 [Google Scholar]
  32. Breza E, Chandrasekhar A, Larreguy H. 2014. Social structure and institutional design: evidence from a lab experiment in the field. Unpubl. Manuscr.
  33. Bryan GT, Karlan D, Zinman J. 2015. Referrals: peer screening and enforcement in a consumer credit field experiment. Am. Econ. J. Microecon. In press [Google Scholar]
  34. Bursztyn L, Ederer F, Ferman B, Yuchtman N. 2014. Understanding mechanisms underlying peer effects: evidence from a field experiment on financial decisions. Econometrica 82:1273–301 [Google Scholar]
  35. Burt RS. 2005. Brokerage and Closure: An Introduction to Social Capital Oxford, UK: Oxford Univ. Press [Google Scholar]
  36. Caeyers B, Dercon S. 2012. Political connections and social networks in targeted transfer programs: evidence from rural Ethiopia. Econ. Dev. Cult. Change 60:639–75 [Google Scholar]
  37. Cai J, de Janvry A, Sadoulet E. 2015. Social networks and the decision to insure. Am. Econ. J. Appl. Econ 7:281–108 [Google Scholar]
  38. Calvo E, Murillo MV. 2013. When parties meet voters: assessing political linkages through partisan networks and distributive expectations in Argentina and Chile. Comp. Polit. Stud. 46:851–82 [Google Scholar]
  39. Carter MR, Laajaj R, Yang D. 2014. Subsidies and the persistence of technology adoption: field experimental evidence from Mozambique. Unpubl. Manuscr.
  40. Chandrasekhar A, Kinnan C, Larreguy H. 2014. Information, networks and informal insurance: evidence from a lab experiment in the field. Unpubl. Manuscr.
  41. Chandrasekhar A, Kinnan C, Larreguy H. 2015. Social networks as contract enforcement: evidence from a lab experiment in the field. Unpubl. Manuscr.
  42. Chandrasekhar A, Lewis R. 2011. Econometrics of sampled networks. Unpubl. Manuscr.
  43. Christakis NA, Fowler JH. 2007. The spread of obesity in a large social network over 32 years. N. Engl. J. Med. 357:370–79 [Google Scholar]
  44. Christakis NA, Fowler JH. 2009. Connected: The Surprising Power of Our Social Networks New York: Little Brown [Google Scholar]
  45. Chuang Y. 2014. Self control or social control? Peer effects on temptation consumption. Unpubl. Manuscr.
  46. Coleman J, Katz E, Menzel H. 1957. The diffusion of an innovation among physicians. Sociometry 20:253–70 [Google Scholar]
  47. Coleman JS. 1990. Foundations of Social Theory Cambridge, MA: Harvard Univ. Press [Google Scholar]
  48. Collins D, Morduch J, Rutherford S, Ruthven O. 2009. Portfolios of the Poor: How the World’s Poor Live on $2 a Day Princeton, NJ: Princeton Univ. Press [Google Scholar]
  49. Comola M, Fafchamps M. 2014a. Estimating mis-reporting in dyadic data: Are transfers mutually beneficial? Unpubl. Manuscr.
  50. Comola M, Fafchamps M. 2014b. Testing unilateral and bilateral link formation. Econ. J. 124:954–76 [Google Scholar]
  51. Comola M, Mendola M. 2015. The formation of migrant networks. Scand. J. Econ. 117:592–618 [Google Scholar]
  52. Comola M, Prina S. 2014. Do interventions change the network? A dynamic peer effect model accounting for network changes. Unpubl. Manuscr.
  53. Conley T, Udry C. 2010. Learning about a new technology: pineapple in Ghana. Am. Econ. Rev. 100:35–69 [Google Scholar]
  54. Costenbader E, Valente TW. 2003. The stability of centrality measures when networks are sampled. Soc. Networks 25:283–307 [Google Scholar]
  55. Cox D, Fafchamps M. 2008. Extended family and kinship networks: economic insights and evolutionary direction. See Schultz & Strauss 2008, pp. 3711–84
  56. Cruz C. 2013. Social networks and the targeting of illegal electoral strategies. Unpubl. Manuscr.
  57. Cruz C, Labonne J, Querubin P. 2014. Politician family networks and electoral outcomes: evidence from the Philippines. Unpubl. Manuscr.
  58. D’Exelle B, Riedl A. 2013. Social embeddedness and resource sharing. Unpubl. Manuscr.
  59. De Giorgi G, Pellizzari M, Redaelli S. 2010. Identification of social interactions through partially overlapping peer groups. Am. Econ. J. Appl. Econ 2:241–75 [Google Scholar]
  60. De Weerdt J, Fafchamps M. 2011. Social identity and the formation of health insurance networks. J. Dev. Stud. 47:1152–77 [Google Scholar]
  61. Dercon S, De Weerdt J. 2006. Risk-sharing networks and insurance against illness. J. Dev. Econ. 81:337–56 [Google Scholar]
  62. Di Falco S, Bulte E. 2011. A dark side of social capital? Kinship, consumption, and savings. J. Dev. Stud. 47:1128–51 [Google Scholar]
  63. Di Falco S, Bulte E. 2013. The impact of kinship networks on the adoption of risk-mitigating strategies in Ethiopia. World Dev. 43:100–10 [Google Scholar]
  64. Ebbes P, Huang Z, Rangaswamy A. 2013. Subgraph sampling methods for social networks: the good, the bad, and the ugly. Unpubl. Manuscr.
  65. Emerick K. 2014. The efficiency of trading in social networks: experimental measures from India. Unpubl. Manuscr.
  66. Faccio M. 2006. Politically connected firms. Am. Econ. Rev. 96:369–86 [Google Scholar]
  67. Fafchamps M. 2011. Risk sharing between households. See Benhabib et al. 2011, pp. 1255–79
  68. Fafchamps M, Gubert F. 2007. Risk sharing and network formation. Am. Econ. Rev. 97:75–79 [Google Scholar]
  69. Fafchamps M, Labonne J. 2013. Do politicians’ relatives get better jobs? Evidence from municipal elections in the Philippines. Unpubl. Manuscr.
  70. Fafchamps M, Lund S. 2003. Risk-sharing networks in rural Philippines. J. Dev. Econ. 71:261–87 [Google Scholar]
  71. Fafchamps M, Moradi A. 2015. Referral and job performance: evidence from the Ghana colonial army. Econ. Dev. Cult. Change Forthcoming [Google Scholar]
  72. Fafchamps M, Quinn S. 2012. Networks and manufacturing firms in Africa: initial results from a randomised experiment. Unpubl. Manuscr.
  73. Finan F, Larreguy H, Schechter L. 2014. Vote buying and networks: information, enforcement or both? Unpubl. Manuscr.
  74. Fisman R. 2001. Estimating the value of political connections. Am. Econ. Rev. 91:1095–102 [Google Scholar]
  75. Foster A, Rosenzweig MR. 1995. Learning by doing and learning from others: human capital and technical change in agriculture. J. Polit. Econ. 103:1176–209 [Google Scholar]
  76. Giné X, Karlan DS. 2014. Group versus individual liability: short and long term evidence from Philippine microcredit lending groups. J. Dev. Econ. 107:65–83 [Google Scholar]
  77. Godlonton S, Thornton R. 2012. Peer effects in learning HIV results. J. Dev. Econ. 97:118–29 [Google Scholar]
  78. Heath R. 2015. Why do firms hire using referrals? Evidence from Bangladeshi garment factories. Unpubl. Manuscr.
  79. Hogset H, Barrett CB. 2010. Social learning, social influence, and projection bias: a caution on inferences based on proxy reporting of peer behavior. Econ. Dev. Cult. Change 58:563–89 [Google Scholar]
  80. Huisman M, Steglich C. 2008. Treatment of non-response in longitudinal network studies. Soc. Networks 30:297–308 [Google Scholar]
  81. Ioannides YM, Loury LD. 2004. Job information networks, neighborhood effects, and inequality. J. Econ. Lit. 42:1056–93 [Google Scholar]
  82. Jack W, Ray A, Suri T. 2013. Transaction networks: evidence from mobile money in Kenya. Am. Econ. Rev. 103:356–61 [Google Scholar]
  83. Jack W, Suri T. 2014. Risk sharing and transaction costs: evidence from Kenya’s mobile money revolution. Am. Econ. Rev. 104:183–223 [Google Scholar]
  84. Jackson MO. 2009. Networks and economic behavior. Annu. Rev. Econ. 1:489–511 [Google Scholar]
  85. Jackson MO, Rodriguez-Barraquer T, Tan X. 2012. Social capital and social quilts: network patterns of favor exchange. Am. Econ. Rev. 102:1857–97 [Google Scholar]
  86. Johnson S, Mitton T. 2003. Cronyism and capital controls: evidence from Malaysia. J. Financ. Econ. 67:351–82 [Google Scholar]
  87. Karlan D, Möbius M, Rosenblat T, Szeidl A. 2009. Trust and social collateral. Q. J. Econ. 124:1307–61 [Google Scholar]
  88. Karlan D, Möbius MM, Rosenblat TS, Szeidl A. 2010. Measuring trust in Peruvian shantytowns. Unpubl. Manuscr.
  89. Karlan DS. 2007. Social connections and group banking. Econ. J. 117:52–84 [Google Scholar]
  90. Khwaja AI, Mian A. 2005. Do lenders favor politically connected firms? Rent provision in an emerging financial market. Q. J. Econ. 120:1371–411 [Google Scholar]
  91. Kim DA, Hwong AR, Stafford D, Hughes DA, O’Malley AJ, et al. 2014. A randomised controlled trial of social network targeting to maximise population behaviour change. Unpubl. Manuscr.
  92. Kinnan C, Townsend R. 2012. Kinship and financial networks, formal financial access, and risk reduction. Am. Econ. Rev. 102:289–93 [Google Scholar]
  93. Kosfeld M. 2004. Economic networks in the laboratory: a survey. Rev. Netw. Econ 3:1–23 [Google Scholar]
  94. Kremer M, Miguel E. 2007. The illusion of sustainability. Q. J. Econ. 122:1007–65 [Google Scholar]
  95. Krishnan P, Sciubba E. 2009. Links and architecture in village networks. Econ. J. 119:917–49 [Google Scholar]
  96. Ligon E, Schechter L. 2010. Structural experimentation to distinguish between models of risk sharing with frictions. Unpubl. Manuscr.
  97. Ligon E, Schechter L. 2012. Motives for sharing in social networks. J. Dev. Econ. 99:13–26 [Google Scholar]
  98. Liverpool-Tasie LSO, Winter-Nelson A. 2012. Social learning and farm technology in Ethiopia: impacts by technology, network type, and poverty status. J. Dev. Stud. 48:1505–21 [Google Scholar]
  99. Maertens A. 2014. Who cares what others think (or do)? Social learning and social pressures in cotton farming in India. Unpubl. Manuscr.
  100. Maertens A, Barrett CB. 2013. Measuring social networks’ effects on agricultural technology adoption. Am. J. Agric. Econ. 95:353–59 [Google Scholar]
  101. Magnan N, Spielman DJ, Lybbert TJ, Gulati K. 2014. Leveling with friends: social networks and Indian farmers’ demand for a resource conserving technology. Unpubl. Manuscr.
  102. Marsden PV. 1990. Network data and measurement. Annu. Rev. Sociol. 16:435–63 [Google Scholar]
  103. Matuschke I, Qaim M. 2009. The impact of social networks on hybrid seed adoption in India. Agric. Econ. 40:493–505 [Google Scholar]
  104. Mbiti I, Weil D. 2015. Mobile banking: the impact of M-Pesa in Kenya. African Successes: Modernization and Development Edwards S, Johnson S, Weil D. Chicago: Univ. Chicago Press. Forthcoming [Google Scholar]
  105. Miller G, Mobarak AM. 2015. Learning about new technologies through social networks: non-traditional stoves in rural Bangladesh. Mark. Sci Forthcoming [Google Scholar]
  106. Morawczynski O, Pickens M. 2009. Poor people using mobile financial services: observations on customer usage and impact from M-PESA. Tech. Rep., CGAP, World Bank
  107. Morris M. 2004. Overview of network survey designs. Network Epidemiology: A Handbook of Survey Design and Data Collection Morris M. 8–21 Oxford, UK: Oxford Univ. Press [Google Scholar]
  108. Munshi K. 2003. Networks in the modern economy: Mexican migrants in the US labor market. Q. J. Econ. 118:549–99 [Google Scholar]
  109. Munshi K. 2004. Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution. J. Dev. Econ. 73:185–213 [Google Scholar]
  110. Munshi K. 2008. Information networks in dynamic agrarian economies. See Schultz & Strauss 2008, pp. 3085–113
  111. Munshi K. 2011. Labor and credit networks in developing economies. See Benhabib et al. 2011, pp. 1223–54
  112. Munshi K. 2014. Community networks and the process of development. J. Econ. Perspect. 28:49–76 [Google Scholar]
  113. Ngatia M. 2011. Social interactions and individual reproductive decisions. Unpubl. Manuscr.
  114. Oster E, Thornton R. 2012. Determinants of peer effects in menstrual cup take-up. J. Eur. Econ. Assoc. 10:1263–93 [Google Scholar]
  115. Perkins JM, Subramanian SV, Christakis NA. 2015. Social networks and health: a systematic review of sociocentric network studies in low- and middle-income countries. Soc. Sci. Med 125:60–78 [Google Scholar]
  116. Sacerdote B. 2001. Peer effects with random assignment: results for Dartmouth roommates. Q. J. Econ. 116:681–704 [Google Scholar]
  117. Sacerdote B. 2014. Experimental and quasi-experimental analysis of peer effects: two steps forward?. Annu. Rev. Econ. 6:253–72 [Google Scholar]
  118. Schaffer J, Baker A. 2014. Clientelism as persuasion-buying: evidence from Latin America. Unpubl. Manuscr.
  119. Schechter L, Yuskavage A. 2011. Reciprocated versus unreciprocated sharing in social networks. Unpubl. Manuscr.
  120. Schechter L, Yuskavage A. 2012. Inequality, reciprocity, and credit in social networks. Am. J. Agric. Econ. 94:402–10 [Google Scholar]
  121. Schultz TP, Strauss S. 2008. Handbook of Development Economics Vol. 4 Oxford, UK: Elsevier [Google Scholar]
  122. Shakya HB, Christakis NA, Fowler JH. 2015. Social network predictors of latrine ownership. Soc. Sci. Med 125:129–38 [Google Scholar]
  123. Townsend R. 1994. Risk and insurance in village India. Econometrica 62:539–91 [Google Scholar]
  124. Udry C. 1990. Credit markets in northern Nigeria: credit as insurance in a rural economy. World Bank Econ. Rev. 4:251–69 [Google Scholar]
  125. Udry C. 1994. Risk and insurance in a rural credit market: an empirical investigation in northern Nigeria. Rev. Econ. Stud. 61:495–526 [Google Scholar]
  126. Vasilaky K, Leonard KL. 2014. As good as the networks they keep? Improving farmers’ social networks via randomized information exchange in rural Uganda. Unpubl. Manuscr.
/content/journals/10.1146/annurev-resource-100814-125123
Loading
  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error