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We run a novel field experiment to link managers of African manufacturing firms. The experimentresembles the many forms of interaction that business and community organizations offer to their members.The design features exogenous link formation, exogenous seeding of information, and exogenousassignment to treatment and placebo. We study the impact of the experiment on firm business practicesoutside of the lab. We find that the experiment successfully created new variation in social networks. Wefind significant diffusion of business practices in terms of VAT registration and having a bank currentaccount. This diffusion is a combination of diffusion of innovation and simple imitation. At the time ofour experiment, all three studied countries were undergoing large changes in their VAT legislation

Networks and Manufacturing Firms in Africa: Results from a Randomized Field Experiment