Social Capital and Agricultural Trade

have. Using original survey data from three African countries, we establish that individual traders with more contacts have higher output. We also investigate the origin of social capital and other productive resources. The evidence suggests that start-up conditions and business experience have a paramount influence on social and physical capital. Family background is relatively unimportant after the creation of the firm, but it matters at start-up. In a world characterized by transactions costs, economic exchange is difficult and complex. Finding buyers and sellers takes time and effort, negotiating and enforcing contracts is costly, and contractual performance must be monitored. Social capital can help economize on transactions costs by speeding up search, increasing trust, and facilitating the circulation of information (e.g., Knack and Keefer; Fukuyama; Granovetter; Putnam, Leonardi, and Nanetti). The effect of transactions costs on eco-