TY  - RPRT
        AU  - Chakraborty, Tanika
AU  - Mukherjee, Anirban
AU  - Saha, Sarani
        TI  - Court-ship, Kinship and Business: A Study on the Interaction between the Formal and the Informal Institutions and Its Effect on Entrepreneurship
        PY  - 2015/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8887
        UR  - https://www.iza.org/publications/dp8887
        AB  - 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.
        KW  - formal institution
KW  - court
KW  - informal network
KW  - entrepreneurship
        ER  -