Research for Development and Justice

Poverty Dynamics

ethnic ties, trade, transaction cost, small-scale producers

Countries and regions:

Ethnic Ties in Trade Relationships and the Impact on Economic Performance: The Case of Small-Scale Producers in the Handloom Sector in Ethiopia

Merima Ali and Jack Peerlings (2011)

in Journal of Development Studies vol. 47 no. 8 pp. 1241-1260


This article analyses the importance of ethnic ties in trade relationships of small-scale producers in the handloom sector in Ethiopia using both a non-parametric and a parametric statistical method. It is shown how various socio-economic characteristics of producers lead to ethnic ties with traders. It is also shown that ethnic ties affect the performance of producers negatively. Apparently the positive effect of ethnic ties, through the reduction of transaction costs arising from market imperfections, does not outweigh the negative effects of closed social networks.

Publications with same geographic focus:

Journal Article (Peer-Reviewed)

Ethiopia After Meles: Stability for How Long?

Lovise Aalen (2014) in Current History vol. May 2014

Book Chapter

When Per Diems Take Over: Training and Travel as Extra Pay

Ingvild Aagedal Skage, Tina Søreide, Arne Tostensen (2014) in Tina Søreide, Aled Williams: Corruption, Grabbing and Development: Real World Challenges. Cheltenham and Northamption (MA): Edward Elgar Publishing

Publications within same theme:

Book Chapter

Micro effects of natural resources: Insights from a survey of Angolan microcredit clients

Allan Cain, Ivar Kolstad and Arne Wiig (forthcoming) in A. Grant, W. R. N. Compaoré, and M. Mitchell: New Approaches to the Governance of Natural Resources: Insights from Africa. New York: Palgrave Macmillan

Book Chapter

Resource curse

Ivar Kolstad (forthcoming) in Vodosek, M. and Hartog, D. v. (eds.): Wiley Encyclopedia of Management, 3rd edition, Volume 6 International Management. West Sussex: John Wiley & Sons

Journal Article (Peer-Reviewed)

Returns to education among entrepreneurs in Bangladesh

Ivar Kolstad, Arne Wiig and Khondaker Golam Moazzem (2014) in Journal of Asian Economics vol. 34 pp. 54-65

Publications with similar keywords:

CMI Working Paper

Networks, distance and trust: Telecommunications and changing trading practices in Ghana

Ragnhild Overå (2004) Bergen: Chr. Michelsen Institute (CMI Working Paper WP 2004: 15)

CMI Report

Experience from Bangladesh with ethical trading initiatives

K.A.S. Murshid, Salma Chaudhuri Zohir, Anna Milford and Arne Wiig (2003) Bergen: Chr. Michelsen Institute (CMI Report R 2003: 7) 39 p.

CMI Report

Trust and Trade ... Is distance dead?

Guri Sandelien (2003) Bergen: Chr. Michelsen Institute (CMI Report R 2003:4) 55 p.


Merima Ali

Economist focusing micro-economic analysis of small-scale industries, informal networks, Taxation Quality of health care and health systems.

By the same author:

CMI (Chr. Michelsen Institute)
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