Relationships and Traders in Madagascar

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Periodical article

Title:	Relationships and Traders in Madagascar
Authors:	Fafchamps, Marcel Minten, Bart
Year:	1999
Periodical:	Journal of Development Studies
Volume:	35
Issue:	6
Period:	August
Pages:	1-35
Language:	English
Geographic term:	Madagascar
Subjects:	social networks agricultural trade traders Economics and Trade Development and Technology Agriculture, Natural Resources and the Environment
External link:	https://doi.org/10.1080/00220389908422600
Abstract:	This paper documents the role that personal relationships play in economic change. Data from a survey held in 1997 in three main agricultural regions (Fianarantsoa, Majunga and Antananarivo) show that agricultural traders in Madagascar perceive relationships as the most important factor for success in their business. Evidence details the extent to which relationships are used to serve a variety of purposes such as the circulation of information about prices and market conditions; the provision of trade credit; the prevention and handling of contractual difficulties; the regularity of trade flows; and the mitigation of risk. Of these, the regularity of supply and demand and the sharing of risk appear particularly important. Larger and more prosperous traders are those with quantitatively and qualitatively better relationships. Family plays little role in business beyond assistance at start-up. Bibliogr., notes, ref., sum.