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Modelling the costs of informal networking: Evidence from the Western Balkans region

Ledeneva, AV; Efendic, A; (2018) Modelling the costs of informal networking: Evidence from the Western Balkans region. (CCSEE Working Paper 2018/3). UCL Centre for Comparative Studies of Emerging Economies: London, UK. Green open access

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Abstract

This is the first study to explore costs of informal networking in the Western Balkans. In a comparative survey, we find that informal networking, or use of personal contacts for getting things done, is common in the region while the economic cost of informal networking is substantial (100 euros against average monthly income of 250 Euros). In the structure of networking costs, the estimated costs of invested time, a proxy for sociability, dominate over money. Higher costs are associated with larger networks built on strong ties. Respondents who perceive networking as important tend to invest more time and money. The informal networking costs are also higher for those with more education and income, and for entrepreneurs. Individuals bear the high costs of informal networking not only for social and culturally determined reasons, but also with an instrumental purpose. Our evidence suggests that both sociability and instrumentality drive informal networking.

Type: Working / discussion paper
Title: Modelling the costs of informal networking: Evidence from the Western Balkans region
Open access status: An open access version is available from UCL Discovery
Publisher version: https://www.ucl.ac.uk/ssees/comparative-studies-em...
Language: English
Keywords: networking, informal networking, cost of networking, Western Balkans, informal networks
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES
URI: https://discovery-pp.ucl.ac.uk/id/eprint/10057230
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