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Social Capital and Savings Behaviour: Evidence from Vietnam

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Author Info

  • Carol Newman

    ()
    (Institute for International Integration Studies, Trinity College Dublin)

  • Finn Tarp

    ()
    (Department of Economics, University of Copenhagen)

  • Katleen Van Den Broeck

    (Department of Economics, University of Copenhagen)

Abstract

We explore the extent to which social capital can play a role in imparting information about the returns to saving where potential knowledge gaps and mistrust exists. Using data from Vietnam we find strong evidence to support the hypothesis that information transmitted via reputable social organizations increases the proportion of liquid assets held in the form of deposits that yield a return. Our results imply that targeting information on the benefits of deposit saving through formal networks or groups would be effective in increasing the number of households that save at grassroots level.

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Bibliographic Info

Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp351.

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Length: 29 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:iis:dispap:iiisdp351

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Keywords: Household Savings; Social Capital; Information Failure; Risk Aversion;

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Cited by:
  1. Michael King, 2012. "Assistant Professor," The Institute for International Integration Studies Discussion Paper Series iiisdp399, IIIS.

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