Social Networks in Developing Countries

Abstract

Social networks function as an important safety net in developing countries, which often lack formal financial instruments. Such networks are also an important source of information in developing countries with relatively low access to the Internet and literacy rates. We review the empirical literature that uses explicit social network data collected in developing countries. We focus on social networks as conduits for both monetary transfers and information. We also briefly discuss the network-formation literature and comment on data collection strategies, mentioning some areas we believe to be especially ripe for future study.