Social networks and agricultural performance: A multiplex analysis of interactions among Indian rice farmers
Bruhan Konda, Mario Gonzalez Sauri, Robin Cowan, Yashodha Yashodha & Prakashan Chellattan Veettill
#2021-030
Most network studies in agriculture examine uni-dimensional connections
between individuals to understand the effect of social networks on
outcomes. However, in most real-world scenarios, network members'
exchanges happen through multiple relationships and not accounting for
such multi-dimensional interconnections may lead to biased estimate of
social network effects. This study aims to unravel the consequences of
not accounting such multidimensional networks by investigating the
individual and joint effects of multiple connections (relationships)
that exist among households on agricultural output. We use census data
from three villages of Odisha, India that enables us to account for
three types of relationships viz. information networks (knowledge
sharing), credit networks (resource sharing) and friendship (social
bonding) between households. We estimate the social network effect by
combining both econometric (IV regression) and network (directed
networks) techniques to address the problems of endogeneity. The joint
effect of multiple networks is estimated using the multiplex network
framework. We find that information flows are crucial to improve
agricultural output when networks are accounted individually. However,
the joint effect of all three networks using multiplex shows a
significantly positive influence, indicating complementarity across
relationships. In addition, we found evidence for the mediating role of
interpersonal relationships (friendship network) in enhancing gains from
the information flow.
Keywords: Agriculture production, Social network, Multiplex networks,
knowledge sharing, Resource sharing, Friendship
JEL Classification: C26, D83, O13, Q12