Seminar
Ben D'Exelle: Investment Behaviour and Village Networks
Using data on farmers' social networks and agricultural decisions from 28 villages in Uganda, we analyse the influence of their network position on the likelihood of growing new crops.
We distinguish two network mechanisms, which work via the provision of information about new crops and the provision of insurance, and look at the role of direct and indirect connections through the wider village network. We find that both mechanisms are at work, with the insurance function of networks being especially important for traditional farmers. We also find a negative influence of indirect connections that diffuse information.