Feb 10

Article by Endre Sik - EUBORDERREGIONS Hungarian partner - "Trust, Network Capital, and Informality – Cross-Border Entrepreneurship in the First Two Decades of Post-Communism"

The article is published in Review of Sociology 2012/4. 

The paper addresses two of the manifold forms of transformation-specific cross-border entrepreneurial activities and shows the role of particularistic trust and network capital as embedded in these processes. The two case studies illustrate that these activities are “borderline” cases in three

senses: (a) using national borders as an opportunity structure, (b) using ethnicity as a resource to gain trust, and as a defensive mechanism, and (c) creating a semi-permeable zone between the formal and informal

economy. The first one is about old/new form of urban informal trade: the combination of crossborder trade, street vending, and COMECON-marketplace in Mongolian cities in 2000. The second case study is about inter-regional form of informal trade, i.e. the so-called cross-border junk trade, which is a particularly “high-trust” and network capital-intensive form of cross-border entrepreneurship.

Read the article

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Dr. James Scott
Project manager
Ph: (+358) 50366 0653
Project information
Project duration: 01.03.2011-28.02.2015
Lead partner: University of Eastern Finland
Total budget: 3 386 700 €
EU contribution: 2 644 090 €