HKS Affiliated Authors
Director, Center for International Development
Sumitomo-FASID Professor of International Finance and Development
Excerpt
Excerpt
Bank Credit And Business Networks. Asim Ijaz Khwaja, March 1, 2011, Paper. "We construct the topology of business networks across the population of firms in an emerging economy, Pakistan, and estimate the value that membership in large yet diffuse networks brings in terms of access to bank credit and improving financial viability. We link two firms if they have a common director. The resulting topology includes a "giant network" that is order of magnitudes larger than the second largest network. While it displays "small world" properties and comprises 5 percent of all firms, it accesses two-thirds of all bank credit. We estimate the value of joining this giant network by exploiting "incidental" entry and exit of firms over time..." Link