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Social Capital and Access to Credit: Evidence from Uganda

Author

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  • Anni Heikkilä
  • Panu Kalmi
  • Olli-Pekka Ruuskanen

Abstract

We use a nationally representative survey in Uganda to study the links between social capital and financial access. Our results indicate a positive association between individual social capital and access to institutional credit, but no significant relationship between generalised trust and credit access. The effect of individual social capital is more pronounced for poorer people, in rural areas, and in areas where generalised trust is low. Individual social capital seems to promote access especially to semiformal and informal financial institutions.

Suggested Citation

  • Anni Heikkilä & Panu Kalmi & Olli-Pekka Ruuskanen, 2016. "Social Capital and Access to Credit: Evidence from Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 52(9), pages 1273-1288, September.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:9:p:1273-1288
    DOI: 10.1080/00220388.2016.1139695
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    References listed on IDEAS

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    1. Consultative Group to Assist the Poor, 2009. "Financial Access 2009 : Measuring Access to Financial Services around the World," World Bank Publications - Reports 12843, The World Bank Group.
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    2. Ma, Wanglin & Qiu, Huanguang & Fan, Yubing & Zhou, Xiaoshi, 2020. "The joint effects of ICT adoption and access to credit on household income in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304431, Agricultural and Applied Economics Association.
    3. Ailish Craig & Craig W. Hutton & Justin Sheffield, 2022. "Social Capital Typologies and Sustainable Development: Spatial Patterns in the Central and Southern Regions of Malawi," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
    4. Amber Theeuwen & Valérie Duplat & Christopher Wickert & Brian Tjemkes, 2021. "How Do Women Overcome Gender Inequality by Forming Small-Scale Cooperatives? The Case of the Agricultural Sector in Uganda," Sustainability, MDPI, vol. 13(4), pages 1-25, February.
    5. Osei-Tutu, Francis & Weill, Laurent, 2023. "Democracy favors access to credit of firms," European Journal of Political Economy, Elsevier, vol. 77(C).
    6. Dang, Le Phuong Xuan & Hoang, Viet-Ngu & Nghiem, Son Hong & Wilson, Clevo, 2023. "Social networks with organisational resource, generalised trust and informal loans: Evidence from rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 388-402.
    7. Xiaoshun Qin & Dongdong Jiang & Leon Pretorius, 2021. "The Impact of Financial Factors on the After-Sales Service of Agricultural Machinery: A Case Study of Chinese Agricultural Machinery in South Africa," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 11(1), pages 71-78, March.
    8. Mishra, Aswini Kumar & Bhardwaj, Vedant, 2022. "Financial access and household’s borrowing: Policy perspectives of an emerging economy," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 981-999.
    9. Le Phuong Xuan Dang & Viet-Ngu Hoang & Son Hong Nghiem & Clevo Wilson, 2023. "Social capital and informal credit access: empirical evidence from a Vietnamese household panel survey," Empirical Economics, Springer, vol. 65(1), pages 311-340, July.
    10. Li, Changsheng & Ma, Wanglin & Mishra, Ashok K. & Gao, Liangliang, 2020. "Access to credit and farmland rental market participation: Evidence from rural China," China Economic Review, Elsevier, vol. 63(C).
    11. Cheng, Chao & Yang, Liu, 2022. "What drives the credit constraints faced by Chinese small and micro enterprises?," Economic Modelling, Elsevier, vol. 113(C).
    12. Jiaojiao Liu & Gangren Zhang & Jun Zhang & Chongguang Li, 2020. "Human Capital, Social Capital, and Farmers’ Credit Availability in China: Based on the Analysis of the Ordered Probit and PSM Models," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    13. Sana Ullah & Muhammad Tariq Majeed & Babur Wasim Arif, 2021. "Social capital and firms’ choice of financing under credit constraints: microeconomic evidence from Pakistan," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(1), pages 3-13, March.
    14. Courtney Blair & Erica Gralla & Finley Wetmore & Jarrod Goentzel & Megan Peters, 2021. "A Systems Framework for International Development: The Data‐Layered Causal Loop Diagram," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4374-4395, December.
    15. Barriga, Alicia & Ferguson, Neil T. N. & Fiala, Nathan & Leroch, Martin Alois, 2020. "Ethnic cooperation and conflict in Kenya," Ruhr Economic Papers 872, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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