The Role of Social Networks in Economic Development in Less Developed Countries: Analysis Based on Social Experiments and Micro-data

2015 Fiscal Year Final Research Report

• Project/Area Number: 24330082
• Research Category: Grant-in-Aid for Scientific Research (B)
• Allocation Type: Partial Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Waseda University (2014-2015); The University of Tokyo (2012-2013)
• Principal Investigator: Todo Yasuyuki 早稲田大学, 政治経済学術院, 教授 (30336507)
• Co-Investigator(Kenkyū-buntansha): MATOUS Petr 東京大学, 大学院工学系研究科, 講師 (70508192)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: 社会ネットワーク / 経済発展 / 開発途上国

Outline of Final Research Achievements

This research project examined how the structure of social networks affects economic development of less developed countries, using quantitative analysis based on social experiments and micro-data at the household and firm level in Ethiopia and Indonesia. We conducted social experiments in order to estimate causal effects more accurately. In summary, we find that while social networks substantially affect technology diffusion, the network structure affects the effectiveness of diffusion. In particular, we find that networks which embody both dense and strong ties within the community and weak ties with outsiders are more effective than small-world networks. The results have been published in 6 papers and presented in seminars to non-academic audience.

Free Research Field

経済政策