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Who borrows among the poor? MC use determinants in Guatemala, with particular reference to social ties

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  • Masako Hasegawa

    (Osaka School of International Public Policy (OSIPP),Osaka University)

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    Abstract

    Who borrows Micro Credit (MC) is the information needed to improve not only MC programs but also policies of poverty alleviation. This paper analyzes the MC use determinants taking social ties into account using data in Guatemalan Living Standard Measurement Study. It shows that the determinants are relatively different between the poor and the non-poor. It also shows that social ties could raise the possibility of MC utilization especially among the poor, which would verify the function of social ties as collateral of creditworthiness. Those excluded from MC may not be the poorest but the socially weakest.

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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2009/DP2009E002.pdf
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    Bibliographic Info

    Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 09E002.

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    Length: 26 pages
    Date of creation: Jan 2009
    Date of revision:
    Handle: RePEc:osp:wpaper:09e002

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    Keywords: Micro Credit (MC); social ties; information asymmetry; creditworthiness; Guatemala;

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