Business, Brokers and Borders: The Structure of West African Trade Networks

Abstract

The objective of this paper is to show how a formal approach to networks can make a significant contribution to the study of cross-border trade in West Africa. Building on the formal tools and theories developed by social network analysis, we examine the network organisation of 136 large traders in two border regions between Niger, Nigeria and Benin. In a business environment where transaction costs are extremely high, we find that decentralised networks are well adapted to the various uncertainties induced by long-distance trade. We also find that long-distance trade relies both on the trust and cooperation shared among local traders, and on the distant ties developed with foreign partners from a different origin, religion or culture. Studying the spatial structure of trade networks, we find that in those markets where trade is recent and where most of the traders are not native of the region, national borders are likely to exert a greater influence than in those regions where trade has pre-colonial roots. Combining formal network analysis and ethnographic studies, we argue, can make a significant contribution to the current revival of interest in cross-border trade in the policy field.

A tale of two networks: Market formation on the Cambodia–Vietnam frontier

“…Borders often promote trading opportunities, as they divide spaces with differential resources and market opportunities (Walther, 2015). This is also true of the Cambodia-Vietnam border region, where the flow of commodities from Cambodia to Vietnam has intensified over the last decade with Vietnam's economic reconstruction after the Indochina war (see Section 3.1).…”

Population and Morphology of Border Cities

“…The regulations governing border crossings in Africa are one example of such non-codified information, which enables traders to negotiate regulatory obstacles and conduct business with representatives of the authorities responsible for border checkpoints (Titeca, 2012;Lamarque, 2014;Niang, 2013;Cantens and Raballand, 2017). The business communities present in border cities enable traders to share their business experiences and develop a set of informal standards that make their activities possible and profitable (Walther, 2015(Walther, , 2014aKoné, 2015).…”

“…Without an innovative community of traders involved in transnational business networks, border towns and cities can hardly pretend to be border markets. By exploiting the various differentials that characterise border regions, including food price differentials (Map 2.2), these entrepreneurs profit from connecting different nationally-organised markets (Walther, 2015).…”

“…Border cities profited from these national strategies and then experienced spectacular development. Located on one of the main trade corridors for re-exporting used textiles and vehicles, the population of Gaya, a small Nigerien city, jumped from 8 000 to 45 000 people between 1985 and 2015 (Walther, 2015). The mostly spontaneous growth of border cities poses numerous development challenges for new regional and local governments.…”

Population et morphologies des villes frontalières

“…Les règles qui s'appliquent au passage des frontières en Afrique sont un exemple de ces informations non codifiées, qui permettent aux marchands de négocier les obstacles réglementaires et de conclure des relations d'affaires avec les représentants des autorités chargées du contrôle de la frontière (Titeca, 2012 ;Lamarque, 2014 ;Niang, 2013 ;Cantens et Raballand, 2017). L'existence de communautés d'affaires dans les villes frontalières permet aux marchands d'échanger leurs expériences et de forger un ensemble de normes informelles qui rendent leurs activités possibles et rentables (Walther, 2015(Walther, , 2014aKoné, 2015).…”