Post on 14-Jan-2016
description
Network Externalities Network Externalities in Hawala Exchangesin Hawala Exchanges
Anamaria Berea Department for Computational Social ScienceCenter for Social Complexity at Krasnow Institute for Advanced StudiesGeorge Mason University
IntroductionIntroductionWhat is hawala? – exchange mechanism
self-enforced by trust and reputationSimilar to Western UnionMostly associated with certain foreign
remittancesNo data - social network analysisKuran, 2004: specific informal Islamic
institutions lead to lock-in situationsOther business associated with the money
transfer practice
Hawala MechanismHawala Mechanism
Purpose of this researchA methodological proposal on the
empirical observationsCommon-pooling SNA techniques
with nested game theoryNot-empirically exhaustive, but
empirical dataset mapping
Method of AnalysisMethod of Analysis
1. Building the datasets by proxies and informational conjectures:
- proxy: the Pakistani players in major international business (hawaladars network; Pakistan vs. Afghanistan)
- proxy: the pool of countries under scrutiny for remittances by Interpol and UN frozen assets
- 3 files: personal ties, business ties and locations (mini-clusters)
Method of AnalysisMethod of Analysis
2. Analyzing the datasets:- nested game hypothesis (Tsebelis, 1991) – correlation matrix- shows the network externalities
Results and FindingsResults and Findings
Ego Networks in TerrorismEgo Networks in Terrorism
Betwenness Centrality for Betwenness Centrality for LocationLocation
The associated businesses The associated businesses networknetwork
Terrorism Periphery and Terrorism Periphery and Lock-in HypothesisLock-in Hypothesis
MDS with geodesic MDS with geodesic distancesdistances
Degree centrality in the Degree centrality in the correlation matrixcorrelation matrix
DiscussionDiscussionNetwork externalities: drugs, gold,
Dubai and MumbaiLock-in emergence: terrorism in
NWFPHigh Centrality Measures for ObL,
Dawood Ibrahim and TTPThis method of analysis by proxies
and game theory validates conceptual and theoretical publications
Thank you!
Questions?