Chakraborty, Tanika; Mukherjee, Anirban; Saha, Sarani - In: IZA journal of labor & development 4 (2015) 7, pp. 1-21
In this paper we theoretically and empirically examine how the interaction between the formal court system and the … informal loan network affects a household's decision to start a business. We find that when the formal court system is weak …, expansion of informal credit network leads to the proliferation of business. However, with a sufficiently strong court system …
