%0 Report
        %A Chakraborty, Tanika
%A Mukherjee, Anirban
%A Saha, Sarani
        %T Court-ship, Kinship and Business: A Study on the Interaction between the Formal and the Informal Institutions and Its Effect on Entrepreneurship
        %D 2015
        %8 2015 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 8887
        %U https://www.iza.org/index.php/publications/dp8887
        %X In this paper we theoretically and empirically examine how the interaction between the formal court system and the informal loan network affects a household's decision to start a business. We find that when the formal court system is weak, expansion of informal credit network leads to the proliferation of business. However, with a sufficiently strong court system, expansion of credit network has a negative effect on business prospects. This result is explained by the contradictions between formal laws and norms used by informal networks. Our result remains robust after controlling for a variety of household and district level characteristics.
        %K formal institution
%K court
%K informal network
%K entrepreneurship